Banca Ifis sells about €1.5 billion in troubled loans

Banca Ifis is selling about €1.5 billion in troubled loans in Italy, most of them unsecured, meaning they are not backed by specific assets.

These loans are debts that have become difficult to repay.

The sale could create an opportunity for some debtors to negotiate with whoever owns the loans.

The opportunity may apply to people who have legally restructured their financial position.

A loan's face value is not necessarily what a buyer pays for it, so the buyer may value the debt at less than the amount originally owed.

That gap can leave room for a settlement in which a debtor pays an agreed amount to close the debt.

Whether a debtor can reach a settlement depends on negotiation; no terms or outcomes are specified.