InsiderBusinessNon-bank related terminology for NPL packages for sale

Non-bank related terminology for NPL packages for sale

Terminology used for non-performing loan packages up for sale is totally non-bank related. In fact it is related to  nature, engineering etc, Phileleftheros reports.

The target to reduce red loans from €9.67 billion which was the case in August to €3 billion over the coming years goes through various procedures but also terminologies.

The best known sold package of NPLs worth €2.8 billion was Helix which belonged to Bank of Cyprus, while their  second one which is under draft is code-named Helix 2. And a smaller package with a contract value of €245 million under the name Velocity was sold to APS.

The package of red loans by Hellenic Bank is named Tide, while the National Bank of Greece in Cyprus, which manages non-performing loans worth €300 million, has named its package ‘Marine’.

More packages of red loans are expected to go for sale in the near future, including ones by KEDIPES, and this means additional terminology.

As for the state of play of NPLs in Cyprus, these were down by just €14 million to €9.6 billion at the end of August 2019 from €9.6 billion in July 2019. Action taken by banks, including loan package sales, debt securities and foreclosures, decreased NPLs by €17.66 billion at the end of August 2019 compared to 2014.

The total number of restructured loans by end of August stood at €6.0 billion from €6.1 over the first half of 2019. Restructured loans since 2014 stood at €6.8 billion. Total restructured loans were down to 18.2% in the first nine months of 2019 from the first half’s 18.7%.

Non-performing loans to households stood at €4.9 billion in July 2019 and to businesses at €4.3 billion. The ratio of non-performing loans to total loans decreased by 30.6% at the end of March 2019 to 29.3% at the end of August the same year.


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