During the same period, across Europe, 92 NPLs transactions have been made, worth € 67.9 billion. According to Debtwire, the Greek market is gaining a significant share of the pan-European non-performing loans market, with significant mobility on the securitization front in the third quarter of 2019, along with Italy. Alpha Bank and Italian Unicredit are leading the way in the new securitizations planned.
The Greek market’s contribution to the pan-European NPL market has been a major boost, both in view of the implementation of the Greek Asset Protection Scheme (Hercules project) and in view of the mega-deal for the sale of the Cairo portfolio the FPS servicing company by Eurobank to PIMCO. The deal is expected to close next week.
In early October, Eurobank announced the end of exclusive negotiations with PIMCO for the purchase of 20% of mezzanine and junior securities securities (Cairo) of 7.4 billion euros, as well as the sale of Financial Planning Services (FPS). , a subsidiary of the Bank’s claims management company.
Debtwire also notes the increased activity of Greece and Italy in NPLs securitization. As reported, Alpha Bank and UniCredit are leading a wave of recently-planned deals that will bring the expected NPLs’ securities share above the level of total loan sales. So far this year, securitization has fallen to 9% of total loan sales, up from 31% in 2018.
Greece is copying the Italian GACS model with the creation of the Hercules plan, which will allow Greek banks to transfer 30 billion € worth NPLs to an SPV.