Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Mr. Gurría referred to non-performing loans in the Irish financial system, which is also noted in the survey. While the level of non-performing loans is falling, it continues to be elevated compared with European levels. The OECD has referred to the need to reduce these loans. Does Mr. Gurría have a view on the different ways in which this type of loan can be reduced, for example, through more aggressive provisioning, write-offs, enforcement actions, more loan restructures or the option of portfolio sales. Controversy surrounds portfolio sales to private equity funds for a number of reasons, including that these so-called vulture funds are not regulated directly in Ireland and some good loans are finding their way into the portfolios being sold on. I am referring to restructured loans that comply with the terms of the restructure but are still deemed to be non-performing loans under the Single Supervisory Mechanism and European Central Bank rules. What is the OECD's position on the way in which non-performing loan levels should be reduced? Does it have preferred options?