4 January 2016 – Expansión
As a result of this operation, the entity has reduced its doubtful debt balance by €414.3 million (€410.5 million relates to Bankia and €3.8 million relates to BFA).
BFA-Bankia has sold a loan portfolio amounting to €645.1 million. All of the loans had been granted to the business sector and some had been secured by real estate collateral, according to a statement issued by the group on Tuesday 22 December 2015.
Through this operation, BFA-Bankia was seeking to achieve two objectives, namely: to increase liquidity and free up resources to grant new loans; and to reduce its default rate by selling off doubtful debts.
In fact, with the sale of this portfolio, the group has reduced its doubtful loan balance by €414.3 million, of which €410.5 million relates to Bankia and €3.8 million to BFA.
Of the total loan portfolio sold, €564.3 million came from Bankia’s balance sheet and another €80.8 million from BFA’s.
The group explained that this operation will have a “minimal (positive) impact” in terms of capital and that, to maximise the price obtained, the sale has been conducted as a competitive process between “first tier” institutional investors and financial entities.
“The entity is continuing to move forward with its commitment to divest all of its non-strategic assets”, the group said.
Original story: Expansión
Translation: Carmel Drake