Alpha Bank Agrees to Sell Bad Loan Portfolio to Hoist Finance

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A man withdraws money from an ATM at the Alpha Bank branch in central Athens, Greece, on July 19, 2015. REUTERS / Yiannis Kourtoglou

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ATHENS, December 28 (Reuters) – Alpha Bank (ACBr.AT), one of Greece’s four largest lenders, signed a binding agreement with Hoist Finance AB on Tuesday to sell non-performing loans with a book value of EUR 1.3 billion ( $ 1.47 billion).

The Orbit portfolio is for retail unsecured non-performing loans, the sale of which is expected to complete in the first quarter of 2022, the bank said in a press release.

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

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Greek banks have been working to tear down a pile of roughly € 30 billion in bad loans, the legacy of a decades-long financial crisis that shrank Greece’s production by a quarter.

The transaction is the third after the securitization of the Galaxy and Cosmos portfolios. Alpha Bank’s distressed exposure is expected to be reduced by 2.3 percentage points.

($ 1 = 0.8841 euros)

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Reporting by Lefteris Papadimas; Adaptation by Jason Neely

Our standards: The Thomson Reuters Trust Principles.


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