NPL total volumes and the NPL ratio maintained their downward trajectory (€38.3 Bn outstanding and 4.2% respectively, as of 31 March2018). This is partly explained by a rebound in NPL transactions in H2 2018 (€2.4 Bn realised), following a drop of NPL sales in 2H 2017. Most CESEE countries have continued their legal and supervisory efforts to resolve NPLs, although there is a significant divergence in the pace of reforms. At the EU level, discussions are progressing for further harmonisation in this respect, with foreseen spill-over effects on adjacent countries to the EU and additional impetus to further reduction in NPLs. For example, the upcoming EU4 Directive on preventive restructuring framework, second chance and measures to increase the efficiency of restructuring, insolvency, and discharge procedures is likely to have a considerable impact in Europe and beyond. Read the full report