The IFC, the EBRD, APS Delta and Balbec Capital LP are jointly investing €50 million in an unsecured non-performing exposure (NPE) portfolio, originated by Piraeus Bank.

  • IFC, EBRD, APS Delta and Balbec Capital LP invest in Piraeus Bank’s NPE portfolio
  • The investment will be made via acquisition of bonds issued by APS Delta
  • The sale will support the NPEs reduction strategy of the Greek banking sector

The IFC, the EBRD, APS Delta and Balbec Capital LP are jointly investing €50 million in an unsecured non-performing exposure (NPE) portfolio, originated by Piraeus Bank, one of the leading banking groups in Greece. The EBRD’s portion will be €15 million.

This NPE portfolio transaction will support the stability of the Greek banking sector, helping reduce the current number of Greek banks’ total exposures.

As of June 2018, NPEs in Greece stood at €89 billion, representing 48 per cent of total exposures, according to the Bank of Greece’s data. NPEs are expected to decrease to €65 billion by the end of 2019 as part of the reduction plans the lenders have agreed with the supervisory authorities.

This transaction is the second sub-project under the EBRD’s €300 million NPL Resolution Framework that involves the purchase of a non-performing loan (NPL) portfolio in Greece.

The Bank launched the framework in 2017 to support efforts aimed at resolving the persisting challenge of high levels of NPLs in many of its countries of operations.

The EBRD started investing in Greece on a temporary basis in 2015 to support the country’s economic recovery. To date, the Bank has invested over €2 billion in more than 40 projects in the country.

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