(AMNA) - Eurobank on Thursday announced it has entered into an agreement with Intrum to sell a non-performing loan portfolio of total unpaid principal worth 1.5 billion euros, of which 620 million euros are on the balance sheet.
The portfolio consists of unsecured consumer loans, the bank said in an announcement, adding that the servicing of the portfolio will remain with Financial Planning Services (FPS), which is the wholly owned by a Eurobank-licensed NPL servicer.
The investment will be financed by Intrum’s available cash and credit facilities. The transaction is part of Eurobank’s 2017 NPE reduction plan and will conclude within the fourth quarter of 2017.
The consideration is 3 pct in terms of total unpaid principal and will be P&L and capital neutral.
“Eurobank committed towards its regulators and shareholders to derisk its balance sheet by actively managing and reducing its NPL book, is proceeding with a significant sale of consumer unsecured NPLs to Intrum. We are happy to conclude this transaction with the largest European Credit Management Services provider who is well known and reputable for its servicing practices”, said Fokion Karavias, CEO of Eurobank.