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NBG: Offers haircut to mortgage NPLs

National Bank of Greece offers the opportunity to it’s borrowers that meet the standards to buy back their mortgaged houses by paying a lower price than the current value of the asset.

In terms of the bank’s plan to reduce its NPEs and to consolidate its portfolio, the bank is aiming to reduce it’s NPE’s by €14,3 bn in the next 3 years. 50% of this reduction will come as a result of sales, securitization and clearance, and the rest 50% by loan adjustments.

In this context, the bank has reformed its standard “Split & Freeze” programme, that regulates mortgages. The programme was introduced two years ago and had good results during the first year if its implementation. In its new form, Split & Freeze is offered to borrowers that have not paid their loan installments for more than 90 days. The haircut depends on the borrowers financial ability and assets.

According to the bank’s executives, the reformed programme will be the basic tool to regulate NPLs as it has the potential to cover 70% of all mortgage loans. The target is to regulate mortgages of approximately €1 bn in 2020.