| Project Detail |
Location:
Romania
Project number:
54588
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
Approval date:
30 Jun 2023
Status:
Disbursing
PSD disclosed:
03 May 2024
The EBRD and APS are jointly investing in a participation to a Non-Performing Loan ("NPL") portfolio in Romania sold by Piraeus Bank Greece ("PB"). The portfolio consists of approximately 1,800 loans originated by PB Romania with aggregate total legal claims of about EUR 400 million as of 31 December 2022 (the "Portfolio"). The participation in the Portfolio is acquired by an SPV based in Luxembourg, and the management of the portfolio will be delegated to APS, a leading NPL servicer in CESEE region and co-investor for the transaction (the "Project").
Project Objectives
As of June 2023, the NPL ratio in Romania stood at 2.65%, a strong improvement from a high of 22% reached in 2014. However, while headline NPL figures improved, many of those NPLs still remain in the Romanian economy. The Project supports the ultimate resolution of these NPLs, facilitating the return of blocked collateral to the economy and supporting borrowers to exit bankruptcy proceedings. The Project also makes an important contribution to the secondary loan market in Romania, which forms a critical part of a well-functioning financial system. Moreover the Portfolio continues to consume capital from PB, which will be freed up for new lending activity. |
