APS, EBRD buy EUR 400mn sub-standard Romanian loans from Piraeus
<p>The European Bank for Reconstruction and Development (EBRD) announced that, besides debt recovery specialist APS, it is taking over a portfolio of "around 2,000 sub-performing and non-performing loans" with a nominal value of some EUR 400mn in Romania, sold by Piraeus Bank.</p>

<p>The EBRD's participation in the deal is 30%.</p>

<p>The EBRD says that the transaction will support the functioning of the Romanian banking sector, facilitating the return of blocked collateral to the economy and helping borrowers exit bankruptcy proceedings.&nbsp;</p>

<p>"It also frees up NPL servicing capacity, enabling the local financial market to originate new lending," according to EBRD's press release.</p>

<p>The portfolio includes unsecured loans and loans secured with real estate collateral in Romania.&nbsp;</p>

<p>Greek multinational financial services company Piraeus Bank has no subsidiary in Romania since 2018. It sold its Romanian subsidiary to J.C. Flowers in June 2018 (with the EBRD as a co-investor with a 19% stake), which changed the bank's name to First Bank in September 2018 and is currently in the process of selling it to Intesa Sanpaolo.&nbsp;</p>

<p>Piraeus Bank Romania had total assets of EUR 1.5bn at the end of Q3, 2017, according to the latest data available&nbsp;before&nbsp;being taken over by J.C. Flowers.</p>

<p><em>(Photo: <a href="https://www.dreamstime.com/" rel="noopener" target="_blank">Alekleks/ Dreamstime</a>)</em></p>

<p><em>iulian@romania-insider.com</em></p>