Today, the European Parliament, under its lead negotiator S&D MEP Irene Tinagli, reached an agreement with EU governments on developing safe secondary markets for non-performing loans, facilitating a rapid deconsolidation from banks’ balance sheets while encouraging the application of forbearance measures that allow the borrowers to renegotiate or refinance their loans. As the economic fall-out of the Covid-19 pandemic is heavily hitting livelihoods and businesses across Europe, non-performing loans are expected to increase.