The wave of bad debts that should hit France like the rest of Europe will inflate bad loans on banks’ balance sheets. The latter could get rid of them by selling them to collection specialists. These actors are biding their time.
It’s the calm before the storm. In October, business bankruptcies fell 33% over one year, according to figures released Wednesday by the Banque de France. But this decline ” does not indicate a reduction in the number of companies in difficulty “. It is simply the result of specific factors, such as the shutdown of commercial courts during containment.
Because no one doubts it: from next spring, France should be hit by a violent wave of defaults which, mechanically, will increase the volume of bad debts (non-performing loans or NPL in the jargon) in bank balance sheets. The current 130 billion euros of unpaid debts, which concern both companies and individuals, could well be multiplied by more than three by 2023.