NPL pile

Banco Montepio and BPI to sell 200 million in NPL

Banco Montepio and BPI are in the market to sell non-performing loan portfolios with a book value of more than €200 million, according to information gathered by ECO from market sources.

Banco Montepio’s so-called “Zêzere Project”, with a book value of €120 million and launched last week by KPMG, includes two tranches of non-performing loans (NPLs): a secured tranche (with guarantees) worth €57 million, corresponding to 120 individual debtors and another 150 from small and medium-sized enterprises (SMEs), with collateral consisting of real estate valued at around €80 million; and another unsecured tranche worth €63 million of problematic SME loans, 60 per cent of which are insolvent.

BPI, meanwhile, has the “Copper Project”, a toxic loan portfolio worth €85 million, of which 62 million are unsecured loans, 12 million are secured loans and another 11 million are what are known in financial jargon as single names.

None of the banks would comment on the deals.

Original Story: ECO | Author: Alberto Teixeira
Translation and edition: Prime Yield