Italian NPL salary securitization to help puncture European debt balloon

Italy_roadmap_Alamy_575x375_25March21
By Tom Brown
25 Mar 2021

Specialist debt servicer Banca Ifis has pioneered a new securitization structure that will allow more investors to buy defaulted loans, offering some relief for European economies facing a rise in non-performing loans as the bloc recovers from Covid-19.

Banca Ifis, one of the first companies to enter Italy’s defaulted debt market, has structured the first NPL transaction backed by collateral featuring “wage garnishment”, where a judge has placed an order on the employer of a debtor to hold back up to one-fifth of ...

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