Eurobank, one of Greece’s four largest lenders, has signed an agreement with credit service provider doValue on Monday to sell some of its mezzanine and junior bonds for € 5.2 billion in securitization of its non-performing debt portfolio. Stated.
Greek banks have cleaned up their non-performing loan balance sheets through direct sales and securitization, achieving single-digit non-performing loan rates close to next year’s Eurozone average.
A portfolio of non-performing loans called Project Mexico has a total book value of € 3.2 billion and doValue will serve sour loans.
The transaction is expected to close by the end of December, subject to certain conditions, including the adoption of a ministerial resolution to include Mexican securitization in the government’s Hercules II program to reduce non-performing loans.
According to Eurobank, Mexico’s securitized distressed loans will be reclassified as “for sale” in the third quarter.
The sale of the Mexican Note and the amortization of the Mexican loan will be completed in the fourth quarter of this year.
The transaction will not have a significant impact on Eurobank’s regulatory capital adequacy ratio and its non-performing loan exposure (NPE) ratio is expected to be 7.3%. [Reuters]
http://feedproxy.google.com/~r/ekathimerini/sKip/~3/mHsNg6whX-w/ Eurobank signs NPL contract with doValue