The recent extension of the GACS guarantee scheme is expected to further fuel Italian non-performing loan securitisation issuance (SCI 5 September). However, the programme is unlikely to be expanded to cover unlikely-to-pay (UTP) loans, due to political constraints.
Following the European Commission’s approval of the GACS extension, Scope reaffirmed its forecast of a total disposal of Italian NPLs of €100bn in 2018, which includes GACS-eligible securitisations and portfolio sales.
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