Restructuring and Investments Articles
Greece has opened the way for the development of a secondary market for nonperforming loans with the introduction of Law 4354/2015 (the “NPL Law”), which entered into force on 16 December 2015. The NPL Law is not only aimed at stabilising the banking sector by providing immediate liquidity to the relevant credit institutions, but also at assisting defaulting borrowers to restructure their debts more efficiently.
Changes in regulation shall help restructuring Greek businesses: Investment opportunities are expected along the process.
Amidst many evident problems in Greece there are also positive developments, which should not be overlooked. Gradual changes to the legal framework for insolvencies and recapitalisations of banks open opportunities for companies to restructure their business and for creditors to improve their low expected recovery rate.