Alpha Bank, Greece’s fourth largest lender, said it had received two binding bids for the sale of a bad loan portfolio worth about €10.6 billion. The transaction will involve a securitisation and also the sale of the bank’s loan servicing platform Cepal.
The portfolio, known as Galaxy, consists of retail loans worth €7.6 billion plus loans to medium-sized and large corporate clients worth €3 billion. The bank did not disclose further details.
Greek banks have been struggling to reduce a pile of bad loans worth about €60 billion, the legacy of a decade-long financial crisis that shrank the country’s economy by a quarter.
Alpha Bank, which is 11% owned by Greece’s bank rescue fund HFSF, wants to reduce its bad loan ratio to 13% of its total loan book.
It reported profit of €97.5 million euros in the second quarter of the year while its non-performing loans stood at 30.2%.
Original Story: Reuters | Reuters Staff
Photo: Alpha Bank website
Edition: Prime Yield