Ready to initiate the process of returning cured loans to banks are the debt and credit management companies.
According to sources within the industry, discussions are set to commence in 2024 with European supervisory authorities.
This conversation marks a crucial step forward, as approximately 5% to 7% of the non-performing loans that were securitized in previous years have returned to regular repayments for at least a 2-year period.
These are the initial potential openings that will come under scrutiny by Greek banks in the upcoming year.
It’s estimated that within 3 to 5 years, the updated restructured loans returning to the banking system could amount to as much as €10 billion.
These loans, might fetch higher prices, roughly around 70% to 80% of their nominal value.
This outcome would firstly benefit banks bolstering their assets with minimal transactions.
Secondly, the management companies would enhance their recoveries, achieving their operational goals more swiftly.
According to a top source from the servicers’ industry, considering the reluctance of the ECB’s regulatory arm at this stage to allow banks to acquire these loans there’s consideration for the creation of a “warehouse,” where these openings will remain for a specified period before being reintegrated as regular loans into the banking portfolios.
Under this plan, loans will be securitized for at least 2 years, and banks will acquire senior bonds, paying a satisfactory coupon each year.
This maneuver would expand their assets and simultaneously increase their income from the interest received.
Meanwhile, servicers are gearing up for the next battle in managing securitized or sold non-performing loans.
During the bidding phase concluded as part of the PQH competition for the sale of three packages of non-performing loans amounting to a total of €4.8 billion, increased demand was recorded.
The coming year will see the securitization of non-performing openings from the merging process of Attica Bank and Pancretan Bank, through which liabilities totaling €2.5 to €3 billion will be removed from their balance sheets.
