Not exact matches
Though Portugal is one of the fastest growing euro zone economies,
problems with
non-performing loans and high debt among businesses, individuals and government are a big hurdle - mainly at a time when the government's strategy is focused on consumer spending.
Although published figures of
non-performing loans (NPLs) are questioned by some analysts,
loans designated as «special mention
loans» —
problem loans — have declined as a percentage of total
loans to a little over 3 percent.
Policies that spur more efficient corporate restructuring can revive productivity growth by targeting three inter-related sources of labour productivity weakness: the survival of «zombie» firms (low productivity firms that would typically exit in a competitive market), capital misallocation and stalling technological diffusion... As the zombie firm
problem may partly stem from bank forbearance, complementary reforms to insolvency regimes are essential to ensure that a more aggressive policy to resolve
non-performing loans is effective.
The debt amounts to around 1 percent of gross domestic product and is a
problem for banks that
loaned money to oil companies on the basis of the contract price and have yet to be repaid in full, leading to
non-performing loans, several senior bank officials said.
During the Financial Crisis, which was triggered principally by
problems in the sub-prime home mortgage market, banks saw their
non-performing loans sky - rocket.