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Tuesday, June 2, 2020
Home Non-Performing Loans Bank of Cyprus sells NPLs to APS

Bank of Cyprus sells NPLs to APS

Bank of Cyprus sells NPLs non-performing loansTHE BANK of Cyprus has sold a portfolio of non-performing loans (NPLs), nominally worth €245 million to APS; the distressed debt management company that took over Hellenic Bank’s toxic loans in July 2017.

The portfolio, dubbed ‘Velocity’, has a nominal value of €245 million comprised of mainly small loans to 9,700 borrowers; 8,800 individuals and 900 SMEs.

Velocity has a net asset value of €33.7 million following the bank’s decision to write down some 86% of the loans considered to be non-recoverable and not serviced for five years.

Last August the bank offloaded bad debts and NPLs amounting to €2.8 billion to Apollo Global Management in a project dubbed Helix’.

Bad loans account for some 37 per cent of the bank’s total loan portfolio, and it aims to reduce its level of NPLs to 26 per cent by next year

The Bank of Cyprus has said that €900 million worth of its loans are eligible for the government’s ‘Estia’ scheme, which plans to subsidise the recovery of NPLs in cases where a primary residence has been used as loan collateral.

Restructured NPLs amounting to €600 million will be reclassified by BoC as performing loans by the end of this year after they complete their one-year probationary period as required by the European Banking Authority.

1 COMMENT

  1. So previously we knew who held sway over our houses

    Now we are at the mercy of an unnamed and probably unscrupulous company called APS

    And the Bank of Cyprus can just say “we have no responsibility”

Comments are closed.

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