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IMF Urges Italian Banks to Take Further Steps to Cut Bad Loans

  • Fund stresses ‘significant’ risks ahead for Italian economy
  • Uncertainty about U.S. policies, Brexit among dangers: IMF
Pedestrians pass a branch of Banca Monte dei Paschi di Siena SpA bank in Rome, Italy, on Friday, Dec. 23, 2016.
Photographer: Alessia Pierdomenico/Bloomberg

Italian banks should take additional measures to materially reduce their pile of soured debt and improve efficiency, according to a report from the International Monetary Fund.

“Banks’ non-performing loan reduction and restructuring strategies should be ambitious, and credible, aided by supervisory assessments,” the Washington-based IMF said Thursday after its annual review of the country’s economy and finances.