Czech APS debt servicing company has bought more portfolios of non-performing loans in Cyprus in recent months and slowly but steadily establishes itself in the island’s distressed loans market.
Although the first big market move was its agreement with Hellenic Bank to manage NPLs, APS has recently taken new steps and entered the market of buying red loans.
It first acquired a portfolio of a contractual value of €245 million from Bank of Cyprus which included non-performing and unsecured loans mainly in retail banking. The gross book value was €34 million and included in the portfolio are 9,700 borrowers whose loans are in arrears. This includes 8,800 private loans and 900 SMEs ones.
In addition to the Bank of Cyprus deal, recent reports have the APS Group being close to acquiring non-performing loans that National Bank of Greece has in its subsidiary in Cyprus. These loans have been transferred to CAC Coral Limited, a company set up for this purpose.
An earlier announcement by the National Bank of Greece said that procedures began for the sale of a €400m loan portfolio in Cyprus, including secured business and retail loans.
Undoubtedly, an important milestone for APS and its presence in Cyprus will come in the coming months when Hellenic Bank clarifies whether its portfolio of non-performing loans is up for sale. This possibility is highly probable, according to insiders, and the big question will be whether the new loan buyer will want to continue working with APS or look for someone else instead to manage the red loans.
At the same time, it will become clearer whether NPLs remaining with National Bank of Greek in Cyprus – if any will continue to be managed by APS through the company is has with Hellenic Bank.