Personal bankruptcy reforms could ease NPL sales

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By Owen Sanderson
10 Jun 2020

Reforms to personal bankruptcy regimes in various countries along the lines of the US Chapter 13 code could improve non-performing loan (NPL) markets by boosting transparency and certainty, according to Charles Rusbasan, chief executive of Balbec Capital, which has just raised a new $1.2bn fund to buy NPLs where borrowers are subject to insolvency proceedings, restructuring or other forms of distress.

Governments across the world have responded to the Covid-19 crisis by bringing in various forms of payment moratoriums for personal debt. Poor macroeconomic conditions are likely to continue, even as lockdowns ease, with extraordinary policy support measures rolling off. This is pushing policymakers to consider how to deal ...

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