According to European Bank for Reconstruction and Development (EBRD), EBRD, APS Delta, Balbec Capital and IFC will jointly invest $57 million in portfolio of unsecured sour loans originated by Greece’s Piraeus Bank
Greece banks are struggling with highest ratio of non- performing exposures (NPEs) in Europe because of the seven year debt crisis. Piraeus Bank which is also Greece’s largest lender by assets had an NPE ratio of 47.6 percent at the end of June compared to an average of 4.5 percent in Europe.
The new transaction will support the stability of Greece’s banking sector and will help to reduce bad loan exposures.
EBRD had started investing in Greece in 2015 and since then has invested more than 2 billion euros ($2.26 billion) in more than 40 projects.
About European Bank for Reconstruction and Development
Founded in 1990, EBRD provides project finance for industries and businesses and operates through Banking and Treasury segments. EBRD is headquartered in UK and offers loans for private sector projects and local commercial banks; equity investments; and guarantees, as well as provides assistance through financial intermediaries.
About Balbec Capital
Headquartered in USA, Balbec Capital is a private investment firm with expertise in alternative credit investments who has invested more than $3 billion in 16 different countries.
A sister organization of the World Bank, IFC is the largest global development institution focused on the private sector in emerging markets. IFC works with more than 2000 businesses worldwide and it delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity.
About Piraeus Bank
Founded in 1916, Piraeus Bank provides banking products and services in Europe. Headquartered in Greece, Piraeus Bank’s Retail Banking segment offers deposits, loans, working capital, imports-exports, letters of guarantee, etc. to retail customers and small-medium companies while its Corporate Banking segment provides deposits, loans, syndicated loans, project financing, working capital, imports – exports, letters of guarantees, etc. to large and maritime companies. Piraeus Bank employs around 12920 employees.