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Alpha Bank agrees sale of bad loan portfolio to Hoist Finance

Alpha Bank agrees sale of bad loan portfolio to Hoist Finance
Alpha Bank agrees sale of bad loan portfolio to Hoist Finance   -   Copyright  Thomson Reuters 2021
By Reuters

ATHENS – Alpha Bank, one of Greece’s four biggest lenders, said on Tuesday it entered into a binding agreement with Hoist Finance AB to sell non-performing loans with a book value of 1.3 billion euros ($1.47 billion).

The Orbit portfolio relates to retail unsecured non-performing loans with the sale expected to be completed in the first quarter of 2022, the bank said in a news release.

“The transaction has been agreed at 108 million euros or 7.4% of total unpaid principal balance,”, the bank said.

Greek banks have been working to reduce a pile of about 30 billion euros in bad loans, the legacy of a decade-long financial crisis which shrank Greece’s output by a quarter.

The transaction is the third after the securitisation of Galaxy and Cosmos portfolios. It is expected to reduce Alpha Bank’s non-performing exposures by 2.3 percentage points.

($1 = 0.8841 euros)