WHEN YOU BANK YOUR HOUSE, IT WILL GO TO THE “AMAZON OF CREDITS”. Here is the help of the Commission for post-Covid entrepreneurs19
Now I'll explain how the Commission for entrepreneurs in difficulty and who will fail due to the economic crisis in general and Covid-19 in particular. The bad income of banks, or NPLs, Not Performing Loans, can be sold on the market in a platform that will allow them to be traded easily, as if it were Amazon or Ebay. So an ECB official told Reuters: so tomorrow the bankrupt restaurateur who loses his house because he can't pay will have his property on a nice Ebay-style site where the hedge fund will be able to buy it for little money and speculate on it. In this operation we all lose:
- debtors in difficulty first, who could be blackmailed by those who are institutionalized loan sharks;
- banks which, with internal credit management, could have recovered over 46% of the losses, but which, in this way, will be able to obtain from 23% to 36% at the most.
A nice game in which to win are only a handful of speculators who, among other things, must be facilitated as much as possible with a tool that is "The Ebay of bad debts". Trouble
market to smaller wallet shoppers, with an Amazon or eBay- style platform where you can browse. This can make the market move ”. Edward O'Brien , an ECB official, told Reuters Wednesday, hinting that the EU Commission and the ECB are working on an online platform on which it is possible to negotiate the amount of non-performing loans that are still in the portfolios of European banks and which is only destined to grow following the Covid-19 emergency.
This solution will be discussed by the ECB with the Commission because the problem is not that of lives ruined by reckless and inhuman credit management, but this: “The problem is that bad loans are too often understood as limited to banks. But it is much broader, it affects the entire economy, “as John Fell, an ECB official, says. In fact, who does not have some creditor who has to pay him 50 thousand euros? All!!
The structure has been discussed by the experts who deal with problems of poverty and who will surely take care of the problem. the FISMA Directorate General, Finance and Markets, of the commission, with the vice-president of the Commission Valdis Dombrovskis. Then Irene Tinagli of the PD, president of the Parliament's Econ commission, also deals with it. All people who know poverty, the problems of the bankrupt and who, from morning to evening, find themselves in the middle of a street. In fact they are very worried… .. for the banks.
What would have been the "Social" solution? give the bankrupt the opportunity to buy back credit at almost the same conditions as the speculator fund, perhaps with a slight disadvantage in order not to encourage incorrect behavior. Or tax incentives for banks to re-discuss the loan. Instead we need to make loan sharks and speculators work.
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.
The article WHEN YOU FAIL YOUR HOUSE WILL GO ON THE "AMAZON OF CREDITS". Here is the help of the Commission for post-Covid19 entrepreneurs comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/quando-fallirete-la-vostra-casa-andra-sullamazon-dei-crediti-ecco-laiuto-della-commissione-per-gli-imprenditori-post-covid19/ on Sun, 27 Sep 2020 06:00:21 +0000.