Translation of "Faule kredite" in English

The kind that makes bad loans.

Too many bad loans from the housing crisis have made their way onto the books of too many banks.

In addition, these bad loans cannot be sufficiently reduced because of structural weaknesses in the Italian insolvency law.

You allowed them to engineer a panic in the markets over the Irish crisis - a panic designed to get you to intervene to guarantee the bond holders the billions that they gambled in bad debts.

On the other hand, though, I am also seriously worried about the ever-increasing role played by the state in dumping, about the unjustified prices for land, about the tax reliefs for export businesses, about the banks’ unrecoverable loans, about the subsidised costs of raw materials, and about much else besides.

Now substitute the IMF loan with the American and European rescue packages, the bad loans with sub-prime debt, and you have virtually parallel situations and transplantable measures with which to fix the US and European financial sectors.

ATB was the subject of scandal in the late 1980s after clients such as Peter Pocklington's Gainers Foods and the Ghermezian Brothers' West Edmonton Mall defaulted on loans.

At the same time, though, the CBR moved aggressively to force smaller banks to raise capital and write down bad loans (something European policymakers have taken forever to do).

This would have discouraged undue investment in some sectors, reduced non-performing loans, and contained excessive leverage in the corporate sector, while avoiding the mispricing of commodities.

As with any merger, consolidating weak, underperforming banks would enable them to strengthen their balance sheets and restructure non-performing loans – estimated to be worth some €1 trillion ($1.1 trillion), roughly three times higher than other global jurisdictions – thereby benefiting the wider economy.

They could buy bad loans from lenders and forgive part of the principal payable by borrowers, simultaneously reducing lenders’ collateral requirements and borrowers’ debt overhang.

When bankers try to cover up bad loans on their books, they extend new loans to enable their insolvent borrowers to pretend to be servicing the original loan.

Insolvent businesses close, bad loans are written off, and lenders can lend with new confidence again.

The immediate problem is Italy’s zombie banks, which are inadequately capitalized, insufficiently profitable, and saddled with bad loans.

Their cost-base is, after all, the highest in the advanced world, yet their profitability is among the lowest, despite their negligible burden of bad loans.

Today’s crisis was triggered by widespread concealment of bad loans within pools of securities sold all over the world.

Without debt restructuring, a low target for the primary budget surplus (net of debt payments), a “bad bank” to deal with non-performing loans, and a comprehensive reform agenda that tackles the worst cases of rent seeking, Greece is condemned to permanent depression.

An ever-increasing capital stock relative to output, however, means ever-lower returns to capital and thus ever more non-performing loans in the banking sector over time.

This is over and above the heavy losses that banks incurred from bad lending and overambitious financial engineering.

In particular, non-performing loans (including substandard and doubtful loans) continue to represent a significant share (about one fifth at end-2002) of the loan portfolio.

Since nobody has the slightest idea of how much bad debt is still poisoning the world financial system, such crises are inevitable in the next period.

He has warned that the volume of bad loans in the banking system needs to be reduced but this is not enough.

As the results of the privatisation process, with few exceptions, were quite negative, the banks began to pile up bad loans.