Several rumors have been circulating in recent weeks regarding a bill to reform the NPL market formulated by some members of the governing majority. By pursuing the goal of favoring consumers and punishing investors, the government may be harming itself.
Details of the proposal are not public, however, from the rumors circulating it should consist in a form of relief for insolvent debtors.
Basically, in the case of non-performing loans sold in a given time frame, the debtor would have the opportunity to free himself from his debt by paying an amount parameterized to the sale consideration of the relevant loan, plus a markup of between 20 percent and 40 percent.
The proposal is aimed at helping fragile citizens and balancing the unfair gains made by shark investors in the past. It is based on the idea that large amounts of bank credits have been sold at very low prices and private investors are making substantial profits while poor debtors are forced to pay back amounts of money way larger than what they would have given to the banks without the interventions of these investors.