Fitch Ratings has warned of a “looming” wall of maturing loans in 2016 as 145 distressed loans remain to be resolved.
Some 32 of the defaulted loans, with a balance of €5bn (£3.5bn), will mature in 2016, nearly twice as much as the loans expected to mature in 2015.
The work-outs are being eased by improvements in the secondary markets, which will ease recoveries by the date of maturity and therefore reduce the total expected to reach term.
In the first quarter of 2015 the proportion of loans going past their maturity date remained level on the previous quarter at 63%. In addition, the number of loans entering special servicing only rose slightly on the previous quarter.
Two loans that matured without repayment in Q1 2015 were DECO 14’s Cottbus shopping centre, which entered special servicing, and the Hercules (Eclipse 2006-4) office loan, which was granted a short-term extension.
Only three loans were expected to mature in the second quarter of 2015.
