Cyprus Mail

BoC going ahead with sale of €144m worth of unsecured NPLs to B2Kapital

Bank of Cyprus is going ahead with the sale of €144m worth of unsecured non-performing loans to B2Kapital, it was reported on Friday.

The benefit for BoC would be €6m from the reversal of provisions and there will not be any impact on the lender’s capital, the Cyprus News Agency said citing bank sources.

The sources said the agreement is the second biggest in Europe in 2020 and it concerns 10,000 unsecured assets made up of consumer and small business loans.

The move proved that BoC “is already focusing on the day after” the sources said, adding that the aim was to continue cutting NPLs mainly through restructures.

In January, Norway-based B2Holding, had, through its Cypriot entity B2Kapital Cyprus, signed an agreement with BoC for the acquisition of an unsecured non-performing loan portfolio with a face value of €400m.

The portfolio consists of a mix of loan products issued to individuals and small businesses. The entire portfolio will be serviced by B2Kapital Cyprus. Established in 2017, B2Kapital Cyprus is already servicing a mixed non-performing loan portfolio with secured and unsecured SMEs.

Since the peak in 2014, BoC has reduced its stock of NPEs by 74 per cent, to €3.9bn. Overall, since 2014, the lender reduces its NPEs by €11.1 bn.

Related posts

Cyprus gets its share of PEPP

Andrew Rosenbaum

Gulf states face worst recession in their history

Andrew Rosenbaum

Cyprus jewellers sceptical of Pandora’s gold recycling

Andrew Rosenbaum

Big brands take stand against racial injustice

Andrew Rosenbaum

RCB Bank emerges in strong position after lockdown

Andrew Rosenbaum

We are entering the phase of recovery, says finance minister

Source: Cyprus News Agency