All posts by Agnes Molnar

Agnes Molnar

About Agnes Molnar

Dr Agnes Molnar is a Senior Associate at Reed Smith. Her practice focuses on cross-border structured, corporate, funds financing as well as non-performing loans and loan portfolio acquisitions and disposals transactions. In addition, as a Hungarian national, Agnes has an in-depth knowledge of the legal and business issues across the entire CEE region and is regularly advising on all types of CEE financing.

CEE NPL Resolutions – Now and Then

NPL central and eastern europe

When the global financial crisis reached Central and Eastern Europe (CEE), in the fall of 2008, the era of easy, foreign-financed credit came to an abrupt end and export markets collapsed. The region’s economy was plunged into a deep recession. Problems with the quality of banks’ assets emerged soon thereafter and non-performing loans (NPLs) rose sharply. Additionally, the high level of local debt denominated (predominantly) in Swiss francs made local borrowers extremely vulnerable and led to them sub-performing. The first wave of NPL resolutions was borne within the Vienna Initiative 1, which aimed to keep western European banks committed to the CEE market. Continue reading CEE NPL Resolutions – Now and Then