Greek lenders Eurobank and Alpha Bank signed a binding agreement on Tuesday with KKR Credit as part of efforts to deal with an initial 1.2 billion euros’ worth of non-performing corporate loans.
Subject to board approval, the European Bank of Reconstruction and Development (EBRD) is considering co-investing in the scheme, which aims to assign the management of credit and equity exposures of a selected number of Greek companies under a platform managed by Pillarstone.
“The platform aims to provide viable Greek corporates which encounter financial difficulties the chance to have access both to liquidity and operational expertise that will help them invest, grow, recover and create new job opportunities,” Theodore Athanassopoulos, executive general manager of Alpha Bank, said, according to Business Wire.
“It is crucial to act promptly in this field to create the conditions for corporates to recover and safeguard jobs, made possible by new capital and knowhow. Today’s announcement is a major step in the right direction. We welcome the participation of the other Greek banks to the platform,” said Constantinos Vousvounis, general manager of Eurobank’s Troubled Assets Group, said.