Hellenic Bank completes the sale of a Euros 144m NPL loan portfolio

Hellenic Bank Public Company Limited has completed the sale of a Euros 144m non-performing loan portfolio of predominantly non-retail secured and unsecured exposures to B2Kapital Cyprus Ltd, according to a press release of the Bank.

B2Kapital Cyprus Ltd, a company licensed by the Central Bank of Cyprus to operate as a credit acquiring company, is a wholly owned subsidiary of B2Holding ASA, a Norwegian corporation listed on the Oslo Stock Exchange.

Further to the Bank’s announcement on 2 January 2018, all required procedures under the relevant legislation and the obtaining of applicable approvals and clearances from the relevant regulatory authorities have been completed.

The transaction is part of the Bank’s strategy for reducing its non-performing loans and is at arm’s length.

The gross contractual outstanding balance of the assets sold pursuant to the Transaction is Euros 144m comprising of 1,082 borrowers and 1,809 facilities at 31 May 2018.

The transaction, according to the Bank, is not expected to have a material impact on the income statement and capital position of the Bank due to existing provisions taken against these assets.

The transaction, said the announcement, is consistent with the Bank’s strategy of fixing the balance sheet and at the same time it is in line with the European Central Bank and International Monetary Fund guidelines on the management of non-performing loans.

In addition to organic reduction of the problematic portfolio, the Bank said that it remains focused to accelerate the de-risking of its non-performing exposures.

?2Kapital Cyprus Ltd will contact the affected customers and their respective guarantors / security providers, in accordance with applicable laws.

Source: Cyprus News Agency