EBRD and Intrum invest in Piraeus Bank’s NPE portfolio in Greece

The European Bank for Reconstruction and Development (EBRD) and Intrum Holding AB are jointly investing in an unsecured non-performing exposure (NPE) portfolio originated by Piraeus Bank, one of the leading banking groups in Greece. The EBRD’s investment is around €11 million. The portfolio consists of approximately 53,000 loans with total legal claims of about €1.7 billion and a gross book value of €0.7 billion.

The portfolio was acquired through a special purpose company, Iris Hellas Investments Designated Activity Company (DAC), while management of the portfolio was assigned to Intrum Hellas. The EBRD’s co-investor, Intrum, is the leading European provider of collection and credit management and real estate services to the banking industry, with a local presence in 24 countries and approximately 10,000 employees across Europe.

Andreea Moraru, EBRD Head of Greece and Cyprus, said: “The Covid‐19 pandemic and its economic consequences present an unprecedented challenge to the global and Greek economy with a rising risk of a new wave of NPE formation. The EBRD is committed to accelerating investments essential to strengthening the resilience of the Greek financial sector. In cooperation with the Intrum Group, we are pleased to support Piraeus Bank in meeting its NPE reduction targets and freeing up capacity for new lending.”

Funding agencies: