Over a year has elapsed since the expiration of the tax incentive that has propelled the monumental growth of Italian non-performing loans, but market participants find that instead of the flame completely dying down, there is still some incentive that continues to capture interest in securitizing NPLs.

According to Standard & Poor's, the total volume of publicly rated transactions in the Italian CMBS market now amounts to more than E8billion - driven, to date, almost exclusively by NPLs. In the past, the tax incentive allowed banks to spread losses resulting from the securitization of NPLs over a five-year period (see ASR 9/10/01).

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