Tackling Small and Medium Enterprise Problem Loans in Europe /

The global financial crisis has left a large private sector debt overhang and high levels of non- performing loans (NPLs) in several European countries. Small and medium-size enterprises (SMEs) represent a significant and weak segment of the nonfinancial corporate sector. SMEs face a number of legal...

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Bibliographic Details
Main Author: Bergthaler, Wolfgang
Other Authors: Kang, Kenneth, Liu, Yan, Monaghan, Dermot
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2015.
Series:Staff Discussion Notes; Staff Discussion Notes ; No. 2015/004
Online Access:Full text available on IMF
Description
Summary:The global financial crisis has left a large private sector debt overhang and high levels of non- performing loans (NPLs) in several European countries. Small and medium-size enterprises (SMEs) represent a significant and weak segment of the nonfinancial corporate sector. SMEs face a number of legal, financial, and regulatory challenges to restructuring that differ from those of larger corporates, such as a rigid and costly insolvency regime, a higher fixed cost to loan restructuring, and the lack of alternative sources of financing. Given SMEs' large presence and close links to the banking system, addressing the SME loan problem in Europe will be critical for strengthening bank and corporate balance sheets and supporting a more robust and sustained recovery.
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Physical Description:1 online resource (38 pages)
Format:Mode of access: Internet
ISSN:2617-6750
Access:Electronic access restricted to authorized BRAC University faculty, staff and students