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This book explores the issue of private sector over-indebtedness following the recent financial crisis. It addresses the various challenges for policymakers, investors and economic agents affected by applied remedial policies as the private non-financial sector in Europe continues to face increased challenges in servicing its debt, with the problem mainly concentrated in several countries in the EU periphery and Eastern Europe. Chapters from expert contributors address reduced investment as firms concentrate on deleveraging and repairing their balance sheets, curtailed consumer spending, depressed collateral values and weak credit creation. They examine effective policies to facilitate private sector debt restructuring which may involve significant upfront costs in terms of time to implement and committed budgetary resources, as well as necessary reforms required to improve the broader institutional framework and judicial capacity. The book also explores the issue of over indebtednessin the household sector, contributing to the literature in establishing best practice principles for household debt.
List of contents
Chapter 1: Introduction.- PART I: Theoretical perspectives & empirical evidence.- Chapter 2: Non-performing Loans: Challenges and Options for Banks and Corporations.- Chapter 3: Non-Performing Loans: A Review of the Literature & the International Experience.- PART II: International experience in dealing with private sector insolvency. Challenges, remedial strategies and lessons learned.- Chapter 4: The Spanish experience.- Chapter 5: Non-performing loans in Ireland: Property development versus mortgage lending.- Chapter 6:The Nordic experience: the case of Denmark in 2005-2015.- Chapter 7: The Cyprus experience in dealing with private sector NPLs.- PART III: Greece: private sector bad loans. Problem dimensions, intrinsic characteristics & remedial strategies.- Chapter 8: The Road to Recovery: Are Greek banks able to finance Greece's economic recovery? - Chapter 9: The Determinants of Loan Loss Provisions: An Analysis of the Greek Banking System in Light of the Sovereign Debt Crisis.- Chapter 10: Micro-behavioural characteristics in a recessionary environment: Moral hazard and strategic default.- Chapter 11: Financial distress, moral hazard aspects and NPL formation under a long-lasting recession: Empirical evidence from the Greek crisis.-Chapter 12: Non-Performing Loans in the Greek banking system: navigating through the "perfect storm".- Chapter 13: Characteristics and possible solutions to problems related to loans to SMEs in Greece.- PART IV: Dealing with private sector insolvency in Greece: legal aspects & institutional perspectives.- Chapter 14: Existing corporate & household insolvency frameworks: characteristics, weaknesses and necessary reforms.- Chapter 15: Financial inclusion: an overview of its various dimensions and its assistance in reducing private sector insolvency. - Chapter 16: Post-crisis corporate insolvency and creditor rights law: building the reform paradigm.
About the author
Platon Monokroussos is Group Chief Economist and Deputy General Manager of Eurobank Ergasias S.A. He is a Senior Visiting Fellow at the Hellenic Observatory of the London School of Economics and Political Science. He is Chairman of the Scientific Council of the Hellenic Bank Association and its representative to the Chief Economists' Group (CEG) of the European Banking Federation. Before joining Eurobank, he held high-level positions in leading financial institutions, including ABN AMRO and Bank of America. Dr Monokroussos has written extensively on contemporary macroeconomic and financial issues and is co-editor of the book "A Financial Crisis Manual: Reflections and the Road Ahead" (Palgrave). In recent years, his team has repeatedly been included in the Reuters top-10 list of most accurate global forecasters of major exchange rates.
Christos V. Gortsos is Professor of International Economic Law at the Panteion University of Athens, Greece. In addition,he has multiple standing teaching assignments across leading institutions such as the Law School of the National and Kapodistrian University of Athens in Greece, the Faculty of Law at Izmir University of Economics in Turkey, the European Institute at Zurich University in Switzerland and the European Institute at Saarland University in Germany. His main fields of teaching are financial regulation, international and EU monetary and financial Law, Greek administrative financial law, general EU law, international trade law, as well as economic analysis of law.
Summary
This book explores the issue of private sector over-indebtedness following the recent financial crisis. It addresses the various challenges for policymakers, investors and economic agents affected by applied remedial policies as the private non-financial sector in Europe continues to face increased challenges in servicing its debt, with the problem mainly concentrated in several countries in the EU periphery and Eastern Europe. Chapters from expert contributors address reduced investment as firms concentrate on deleveraging and repairing their balance sheets, curtailed consumer spending, depressed collateral values and weak credit creation. They examine effective policies to facilitate private sector debt restructuring which may involve significant upfront costs in terms of time to implement and committed budgetary resources, as well as necessary reforms required to improve the broader institutional framework and judicial capacity. The book also explores the issue of over indebtednessin the household sector, contributing to the literature in establishing best practice principles for household debt.
