ECONOMY

NPL management permits in works

npl-management-permits-in-works

The first licenses for companies that will undertake the management of banks’ nonperforming loans will be issued straight after the completion of the bailout review that resumed on Wednesday.

A decision to that effect by the governor of the Bank of Greece is ready and is expected to be published in the Government Gazette in the next few days, setting the terms and conditions for the foundation of the companies that will refinance or even buy loans whose repayment has been delayed by over 90 days.

The central bank will then be obliged to issue or refuse a license within a 20-day period after the application has been submitted.

The first stage of the involvement of such companies with the local banks’ loan portfolios will be based on joint ventures set up with Greek lenders, mainly for the management of debts, i.e. without proceeding to their acquisition.

Alpha Bank has already begun cooperating with Spain’s Aktua. The two are promoting the setup of a joint loan management venture, and this does not rule out the participation of other banks, as discussions have already taken place with Eurobank.