In September 2018, a group of senators belonging to the conservative area (today in opposition to the current government) submitted to the Italian Parliament a draft bill1 regarding certain drastic measures intended to support the recovery of bad loans (crediti in sofferenza) and promote the reperforming process of debtors (the “Draft Bill”). The Draft Bill, which is currently under discussion in the Senate together with other measures regarding NPLs, intends to introduce an option right for debtors to settle with their creditors at pre-determined terms.
As part of the legislative process, the Bank of Italy has been requested to provide its opinion on the proposal and, on 18 March 2020, a paper was released by the domestic regulator (the “Bankit Paper”).