A total of 3,400 mortgage loans belonging to 1,800 borrowers is set to return to the banking system, as the debts have been successfully serviced again. The loans, worth €230 million, had previously been classified as non-performing but were subsequently restructured and have since returned to performing status.

The portfolio was acquired by doValue as part of the securitisation of bad loans under the Cairo 2 transaction, which Eurobank carried out in 2020. According to the terms complied with by the borrowers, the loans are now considered remedied and, based on the European Banking Authority’s rules, may no longer be classified as non-performing. This effectively means they have returned to full banking normality.

doValue Greece will complete the sale process and will continue to act as portfolio manager after the transaction closes, ensuring continuity in the management and monitoring of the loans on behalf of the new investors.

The sale on the secondary market to another fund marks the first step in a process whereby, under European Banking Authority rules, banks that sold these loans through securitisations are not permitted to repurchase them directly from the funds to which they were sold.

Source: Ekathimerini | Author: Evgenia Tzortzi
Edition: Prime Yield