By N. Malliara
National Bank, the most historic of Greece’s four systemic banks, is reportedly ready to sell-off a portfolio of “bad debt” to distress funds, which in tandem with stepped up auctions of foreclosed property and an aggressive policy of loan refinancing aims to reduce “mountain” non-performing loans (NPLs) held by the Greek lender.
According to reports, the nominal value of the NPLs portfolio on the sales block is two billion euros, a project called “Earth”. The portfolio includes NPLs corresponding to some 200,000 borrowers and is comprised of outstanding consumer loans valued at 1.1 billion euros and 500 million euros worth of overdue credit card debts. The remaining amount is comprised of loans to SMEs, mostly ones operated by self-employed professionals.
The average outstanding debt is 10,000 euros, with the average delay in terms of servicing the loan being seven years. The entire figure, two billion euros, has been covered by provisions, according to the bank.
Morgan Stanley is the consultant for the NPLs portfolio’s sale.
