Greece: Piraeus Bank enters into strategic alliance with Intrum for the management of €28bil NPEs & REOs
On June 3rd, Piraeus Bank S.A. announced a strategic partnership with the Swedish credit management services provider, Intrum for the management of about €27bil Non Performing Exposures (NPEs) and about €1bil Real Estate Owned Assets (REOs), both currently owned by the bank. The NPEs and REOs will be managed through the establishment of an independent non-performing assets servicing platform in Greece.
According to the agreement, the servicing platform will include a new servicer company to manage the NPEs and another to manage the REO’s. Intrum will hold 80% of each company and rest 20% will be held by Piraeus Bank. The platform is valued at €410mn and the total purchase price for Ιntrum’s acquisition has been agreed at €328mn. The initial term of the contract will be for ten years.
The Transaction is contingent on customary conditions, regulatory approvals and the consent of the Hellenic Financial Stability Fund (HFSF).