The FINANCIAL — IFC, a member of the World Bank Group, together with consortium partners EBRD, APS Delta, and Balbec Capital LP, is investing about €50 million to acquire a portfolio of Non-Performing Exposures from Piraeus Bank S.A. and strengthen the Greek banking sector.
The sale is an important step in reducing NPEs in the Greek banking sector, which stood at €89 billion in June 2018, representing 48 per cent of total exposures, according to Central Bank data. NPEs are expected to decrease to €65 billion by the end of 2019 as part of reduction plans lenders have agreed with supervisory authorities.
The transaction is part of IFC’s Distressed Asset Recovery Program (DARP), a strategic response to the high levels of non-performing loans that have built up in the aftermath of the global financial crisis.
Since its inception in 2007, the program has grown to a total commitment of $5.4 billion globally, including commitments of $2 billion on IFC’s own account and co-investments from third-party investors of around $3.4 billion, making IFC a market leader in distressed asset acquisition and resolution in its countries of operation.