The prolongation of the economic downturn and the materialisation of a second wave of Covid-19 across Europe “could lead to a sudden and significant increase in the level of non-performing loans in the future”, warned the European Banking Authority (EBA) in a report published on Friday 20 November on public support for the repayment of loans taken out by businesses and individuals.
According to this report, around 6% of total bank loans (i.e. EUR 871 billion) benefited from a temporary...