APS, EBRD buy EUR 400mn sub-standard Romanian loans from Piraeus

The European Bank for Reconstruction and Development (EBRD) announced that, besides debt recovery specialist APS, it is taking over a portfolio of "around 2,000 sub-performing and non-performing loans" with a nominal value of some EUR 400mn in Romania, sold by Piraeus Bank.

The EBRD's participation in the deal is 30%.

The EBRD says that the transaction will support the functioning of the Romanian banking sector, facilitating the return of blocked collateral to the economy and helping borrowers exit bankruptcy proceedings.

"It also frees up NPL servicing capacity, enabling the local financial market to originate new lending," according to EBRD's press release.

The portfolio includes unsecured loans and loans secured with real estate collateral in Romania.

Greek multinational financial services company Piraeus Bank has no subsidiary in Romania since 2018. It sold its Romanian subsidiary to J.C. Flowers in June 2018 (with the EBRD as a co-investor with a 19% stake), which changed the bank's name to First Bank in September 2018 and is currently in the process of selling it to Intesa Sanpaolo.

Piraeus Bank Romania had total assets of EUR 1.5bn at the end of Q3, 2017, according to the latest data available before being taken over by J.C. Flowers.

(Photo: Alekleks/ Dreamstime)