Loans

The LMA has discussed suggested amendments with the European Commission. The industry body's head of legal Amelia Slocombe comments some of the key issues.

The country’s first major property-backed portfolio sold by a domestic bank met with strong demand.

The sale by Piraeus Bank is the first major property-backed deal in the country amid pressure from the ECB to bring loan portfolios to the market.

Italian non-performing loan portfolios have been sliced up and sold into the asset-backed securities market.

The Spanish non-core loan sales market dominated European activity in 2017, although volumes were concentrated in mega-deals.

Under pressure from the ECB, Greece’s largest lenders are finally bringing loan portfolios to the market.

Loan portfolio sales activity spiked in 2017 but Europe’s non-core real estate debt pile is still huge.

European regulators deserve credit for pressuring banks to deal with toxic loans, but the weight of capital chasing distressed property debt is also driving activity.

Just as Europe’s lenders are under increasing pressure to deal with non-performing loans, so, too, will they be encouraged to divest performing debt, argues DebtX's Gifford West.

Further deleveraging is expected this year, with €35bn of live sales, although Southern European banks still have huge legacy debt piles.