Since the ancient times, the relation between debtor and creditor has been favouring the latter. This power takes on different meanings according to the guarantees and the possessions of the debtor as well as of the various historical periods.
For many centuries, among the monotheistic religions, Judaism was the only one which regulated and enabled the payment of an interest on borrowed money. Probably this is the reason why the Jews stood out in the financial field and were persecuted so many times over the centuries.
Today this practice is largely accepted, probably even abused. Loans are at the base of our economy and directly influence its growth. If we regard “capitalism” as an economic system based on capital intended as a currency of exchange and as a basis for the assessment of the wealth of a Country, then today we are facing the phenomenon of “creditism”.
The ownership of a Country debt may determine its economic policies much more effectively than the political and administrative power. Just think about Greece or about the fact that the ill-famed “spread” between the national bonds is considered a relevant well-being factor.
Nowadays, investing in non-performing loans and enhancing them are extremely important, well beyond the profitability parameters. Today, the ownership of a loan, net of the legal recovery timeframes, gives the creditor an unprecedented negotiating power. This happens also thanks to securitization, which makes the NPLs more liquid and marketable.
Then it is worth pointing out that the loan is an oversupply good; therefore it is crucial to purchase at a reasonable price and to promptly enhance both the loan and its guarantees.