Welcome to the EY review of the French non-performing loan (NPL) market.
2018 saw a record-breaking year for European NPL transactions as deal volumes surpassed €220bn. France has the second highest stock of NPLs in Europe, totalling €130.2bn as at Q3 2018. Despite this, the Gross Book Value of NPL portfolios sold in France struggled to reach c.€5bn. We expect the French NPL pipeline to grow substantially in the near future as this untapped market responds to a series of notable changes.
Our latest publication, ‘Untapped potential’, sets out the opportunities and challenges of investing in the French NPL market. In particular, we have provided an overview of the economic context, the debt service and purchaser landscape in addition to the regulatory and legal hurdles.