Athens, Greece, November 2, 2018—IFC,
a member of the World Bank Group, together with consortium partners EBRD,
APS Delta, and Balbec Capital LP, is investing about €50 million to acquire
a portfolio of Non-Performing Exposures (NPE) from Piraeus Bank S.A. and
strengthen the Greek banking sector.
The sale is an important step in reducing NPEs in the Greek banking sector,
which stood at €89 billion in June 2018, representing 48 per cent of total
exposures, according to Central Bank data. NPEs are expected to decrease
to €65 billion by the end of 2019 as part of reduction plans lenders have
agreed with supervisory authorities.
“With this—one of Greece’s largest retail non-performing loan transactions—IFC
is also supporting Piraeus Bank’s efforts to restructure its balance sheet,”
said Wiebke Schloemer, IFC’s Regional Director for Europe & Central
Asia. “By mobilizing funding from the private sector to resolve NPLs,
we are increasing the liquidity of Greek banks, freeing up capital for
new lending and supporting the broader Greek economy.”
The transaction is part of IFC’s Distressed Asset Recovery Program (DARP),
a strategic response to the high levels of non-performing loans that have
built up in the aftermath of the global financial crisis.
Since its inception in 2007, the program has grown to a total commitment
of $5.4 billion globally, including commitments of $2 billion on IFC’s
own account and co-investments from third-party investors of around $3.4
billion, making IFC a market leader in distressed asset acquisition and
resolution in its countries of operation.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org