Greek banks to dump bad loans tied to hotels, real estate

March 7, 2018

Greece's lenders are planning to soon sell billions of euros of bad loans tied to hotels and other real estate in a bid to take advantage of strong investor demand for the assets, according to euro2day.gr.

 

Under pressure from European banking regulators, Greek banks have been selling bad loans to private equity funds as a means of getting them off their balance sheets and boosting their capital position. In December. Bad loans held by Greek lenders stood at 95 billion euros.

 

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Most of the loans sold so far have been unsecured corporate loans with banks now looking to sell non performing loans tied to hotels amidst strong growth in the tourism sector.

 

In the second quarter of the year, Alpha Bank is planning to sell a loan portfolio with a nominal value of one billion euros, of which 40% will be hotel loans, reported the website.

 

National Bank is also planning a similar move with a loan portfolio valued at between 200 to 400 million euros, euro2day.gr added. Meanwhile, Piraeus Bank will proceed this month with the second stage of selling 1.6 billion euros of bad loans that are tied to 1,320 properties.

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