Greek banks, one of Europe’s weakest countries, are removing bad debts with sound clips.
In the spring, the pandemic suspended plans among national banks to flush loans still suffering from the eurozone crisis 10 years ago. However, stimuli from the world’s central banks and governments have stimulated efforts by sending new cash to funds that buy bad debts.
Alok Gahrotra, a partner on Deloitte’s Portfolio Lead Advisory Team and advising non-performing loan buyers and sellers, said: “There are many dry powders to develop.”
In late November, Alpha Bank, one of Greece’s four largest lenders, said it was in the final stages of selling its € 10.8 billion total lending portfolio (equivalent to $ 12 billion) and its lending services division. The preferred bidder was US investment firm Davidson Kempner Capital Management LP, which defeated Pacific Investment Management Co. and other companies in the country’s largest sale of bad debt. Two more major banks, the National Bank of Greece and the Piraeus Bank, are aiming to sell loans of around € 7 billion each next year.
Eurobank CEO Fokion Caravias will use a new country-backed securitization program called Heracles for the three transactions.
Greek banks turn the corner with bad debt sales
Source link Greek banks turn the corner with bad debt sales