There will be 'no automatism, I stress nobody' in the application of the future rules for the write-down of bad debts of banks envisaged by the ECB Addendum. So the president of the ECB Supervisory Board Daniele Nouy in a hearing before the European Parliament. The Supervisory Authority will evaluate 'case by case'.
The draft of the new rules envisages the write-down of unsecured non-performing loans in two years and guaranteed bad loans in seven years with a linear write-down mechanism. 'We have not yet taken any decision and we will carefully evaluate all contributions' to the public consultation of the draft Addendum which closes on 8 December.
