Non-performing loans in the euro periphery were not built in a day

Non-performing loans (NPL) in the Southern European countries have continued to grow relative to total loans since the great financial crisis.

The bulk of the NPL stock is in the corporate sector, and more specifically, in construction and real estate activities. But difficulties affect also other sectors. Sluggish economic growth, a low rate of innovation, a weak business environment, and the common monetary policy of the ECB are responsible for the weakness of banks.

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