The global financial crisis of 2008 caused significant problems, primarily in the financial sector, particularly in banks. One of the most serious consequences was the substantial increase in nonperforming loans (NPLs). In some countries, the financial crisis evolved into severe economic and social turmoil, prompting states to resort to special borrowing through the EU and the IMF, which in turn exacerbated the crisis. This article examines the evolution of NPLs across five European countries with distinct characteristics. First, two Eurozone countries that were forced to borrow from the EU and the IMF were Greece and Cyprus. Then, another Eurozone country, France, which did not suffer similar borrowing, and two countries outside the Eurozone, the United Kingdom and Poland. Do the evolution of NPLs have any similarities between the categories of these countries? What factors influenced the evolution of NPLs? This examination spans the period from 2008 to 2023. This study is the first to compare NPLs by distinguishing these specific categories of countries and therefore acquires particular importance in the relevant bibliography. To carry out the study, the evolution of NPLs among the five countries was examined. The study then examines the extent to which macroeconomic factors, such as GDP, public consumption, and unemployment, are related. The study finds that Greece and Cyprus, which entered EU and IMF lending programs, have the highest NPL ratios. There is a strong correlation between NPLs, unemployment, and public consumption, but not with GDP.
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