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Eurobank’s carve-out starts on March 7

Eurobank proceeds to the last phase of its complete transformation with the carve-out of its NPE activities and the submission of the Cairo portfolio to the Hercules SPV. The separation of Eurobank into good and bad bank will begin on March 7th and is set to be completed on March 27th.

Eurobank’s bad bank establisment follows the bank’s strategic partnership with doValue for the servicing of its NPEs through the sale of 80% of FPS (Eurobank’s servicing company). Eurobank will keep a 20% stake in FPS. The Eurobank’s Troubled Asset Group will be transferred to the FPS.

The renaming of FPS to doValue will take place by the end of 2020. The Executive Chairman of the new company will be the current Eurobank Deputy Chief Executive Officer, Theodoros Kalantonis. Anastasios Panoussis, current General Manager, Retail NPL Management and CEO of FPS, will be the CEO of the new company as well.

Eurobank has signed a ten-year contract with FPS to service €5.6 bn of NPEs and €5.7 bn of retail arrears, and to service future liabilities. In addition, FPS will service the €2 bn non-performing mortgage securitization (Pillar), the Cairo transaction securities and third-party portfolios of international investors. In total the FPS underservicing requirements of the carve-out will reach up to about €26 bn for which FPS will also provide real estate management services.

Eurobank’s carve-out is carried out on very favourable terms for the staff of approximately 500 Eurobank TAG employees who will be transferred to FPS.