The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

NPL specialists beware: Greece is not Italy

Distressed buyers could face a labour of Hercules in establishing projected recoveries for Greece’s new NPL securitization scheme.

lb-on-npls-column-780x187

At the end of January, Greece inked its longest trade since 2009, a €2.5 billion 15-year syndicated deal led by Bank of America, Barclays, BNP Paribas, Goldman Sachs, HSBC and JPMorgan. 

The deal is the sovereign’s largest since 2014, and attracted an order book of €18.8 billion while offering a yield of less than 2%.

This remarkable reception, thanks in no small part to Europe’s anaemic interest rate environment, is also further evidence of Greece’s capital market rehabilitation – last October the sovereign even issued short-term debt at a negative yield. 

But a key hurdle still lies ahead: dealing with the stock of non-performing loans at the Greek banks before new EU regulations on minimum coverage for NPL exposures come into force in 2021.

The launch by the Greek government of an asset-protection scheme to deal with the country’s NPL problem – based on the successful Italian GACS (Garanzia sulla Cartolarizzazione delle Sofferenze) model – late last year marks an important step forward in this process. 


Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree