Piraeus Bank agreed with Intrum the sale of a bad loan portfolio (loans of individuals, small businesses and leasing). Piraeus Bank said it reached the deal with Intrum as part of a consortium formed with the European Bank of Reconstruction and Development (EBRD).
The portfolio consists of approximately 53 thousand loans with a total credit requirement of €1.7 bn and €0.7 bn gross book value. The transaction price corresponds to about 6% of the gross book value.
As mentioned in a statement by Piraeus bank, the transaction is part of its actions to reduce the stock of NPEs. Greek banks have revived plans to reduce a mountain of non-performing loans (NPLs) – the legacy of a 10-year financial crisis that shrank the country’s economy by a quarter – after the disruption caused by the coronavirus pandemic.
The transaction is subject to the usual terms and approvals by the Greek authorities, including the consent of the HFSF.
Original Source: Capital.gr
Adaptation/Summary: Kiki Athanasiadis