The latest data show that the non-performing loan (NPL) landscape in central, eastern and south-eastern Europe (CESEE) remains resilient, with stable volumes and ratios across most jurisdictions. As for Greece, the NPL market stayed buoyant, in contrast to the more subdued transaction flows in the CESEE region, says the latest NPL Monitor.

According to the study produced under the scope of the Vienna Initiative, the Greek market remained robust as a lot of market movements (some successful and some not) came in the form of smaller transactions in 2023, without hitting the headlines. And, although only €2.8 billion was sold directly by credit institutions, there was significant activity in secondary markets.

 Banks now approach portfolio sales more from a tactical perspective than as a crisis response. Consolidation dynamics in the credit servicers industry also helped to expand the secondary flow in 2023. 

Regulatory activity, rather than macroeconomic headwinds, has influenced deal activity in recent months. In Greece, the Hercules Asset Protection Scheme (HAPS) was renewed in December 2023 with a guarantee ceiling of €2 billion and expiry in 12 months, paving the way for more activity in the primary markets. Attica Bank and Pancreta Bank are expected to take advantage of the extension.

Original Story: EBRD (release) | Author: Nigina Mirbabaeva
Edition: Prime Yield