Press release - Handbook for Effective Management and Workout of micro, small and medium enterprise NPLs published
Handbook for Effective Management and Workout of micro, small and medium enterprise (MSME) NPLs, that is published today, has been prepared by the World Bank (WB) at the request of the Bank of Slovenia (BoS) and in consultation with Slovenian banking industry, under a technical cooperation project funded by Structural Reform Support Service (SRSS) of the European Commission (EC).
The overarching purpose of Handbook is to support the BoS and the Slovenian banking sector in their ongoing efforts to accelerate the resolution of a large volume of non-performing loans (NPLs) associated with micro, small and medium-sized enterprise (MSME) sector.
Despite its importance for the overall economy, the Slovenian MSME sector is highly over-indebted and responsible for the majority of banks’ NPLs. While the attention of banks and the regulator was until recently centered on large corporate cases, a large portion of problematic MSME exposures remains to be addressed.
In line with EC recommendations in this area, the BoS’ current strategy lists MSME NPL resolution among the key policy priorities.
Handbook aims to help operationalize the Guidelines by providing further operational guidance to banks on how to organize the various stages of MSME NPL workout process. The Handbook seeks to reflect the international and EU best practice on dealing with MSME NPLs. The Handbook’s primary target audience is the management and staff of the banks’ Workout Units specializing in the MSME portfolio.
Handbook is available in Publication section on BoS's web page or here: Handbook for MSME NPL Management and Workout