Although it is common to observe a decline during the summer months due to seasonal factors, this year’s reduction was particularly pronounced compared to the declines recorded in previous years: -35% in 2023 and -38% in 2022.
According to the agency Scope Ratings, recoveries on impaired loans in Italy fell by 54% in August as a result of seasonal factors.
The decline can be attributed to a significant drop in collections through judicial strategies. August marks the height of Italy’s summer holiday season, leading to a major slowdown in business operations, with courts handling only urgent matters. As a result, judicial collections in August were less than half of those in July, decreasing from EUR 64 million to EUR 41 million. Additionally, there was a marked reduction in proceeds from DPOs and note sales compared to the previous month, falling by EUR 13 million and EUR 8 million to EUR 20 million and EUR 0.6 million, respectively.
This report outlines the performance of a fixed set of Italian NPL securitisations rated by Scope, based on monthly servicing reports available through August 2024.
