Eurobank sub­sidiary gets OK to man­age NPLs

Kathimerini English - - Focus - EVGENIA TZORTZI

Eurobank Fi­nan­cial Plan­ning Ser­vices (FPS), is the sec­ond bad­loan man­age­ment firm to ob­tain a li­cense from the Greek au­thor­i­ties to op­er­ate in the lo­cal mar­ket. It fol­lows the per­mit is­sued to Cepal, a joint ven­ture by Al­pha Bank and Ak­tua.

The li­cens­ing of the sec­ond com­pany has come sev­eral months af­ter it ap­plied for the per­mit and this is at­trib­uted to the par­tic­u­larly de­mand­ing in­sti­tu­tional frame- work set for the li­cens­ing of firms that man­age non­per­form­ing loans, which has in prac­tice de­terred sev­eral in­ter­ested par­ties.

This con­clu­sion is con­firmed by the re­port of an in­de­pen­dent con­sul­tant that has stud­ied the reg­u­la­tory frame­works of about 10 Euro­pean coun­tries, in­clud­ing Ire­land, Spain and Ro­ma­nia.

The con­di­tions set are so tough that although FPS con­sti­tutes the evo­lu­tion of ex­ist­ing Eurobank sub­sidiaries it took many months for it to get the ap­proval to op­er­ate. To­day FPS pos­sesses the nec­es­sary struc­ture to start work im­me­di­ately, grad­u­ally un­der­tak­ing Eurobank’s en­tire bad-loan port­fo­lio. Its ob­jec­tive is to man­age loans by other banks too, from the huge pool of NPLs in Greece that now add up to 107 bil­lion eu­ros af­ter their in­crease by 1.5 bil­lion in the first cou­ple of months of 2017.

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