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February 25, 2021

IFC, Kruk purchase a 597 million euros NPL portfolio from Bancpost

The International Finance Corporation (IFC, member of the World Bank Group) and Kruk, a company specialized in debt recovery in Central and Eastern Europe purchased a portfolio of non-performing loans (NPL) from Bancpost and other branches of the Eurobank Group in Romania, with a total outstanding balance of 597 million euros, to help speeding up the settlement of the NPLs and to increase the banking sector’s liquidity in Romania and in the region, the IFC announced.
The high number of NPLs in Romania and in the region is a serious problem ever since the debut of the global financial crisis, in 2008, the IFC said in release to Agerpres on Monday.
The active management of the non-performing loans stock is Eurobank’s strategic priority, said Eurobank Deputy CEO Stavros Ioannou.
The transaction is part of IFC’s Debt and Asset Recovery Program (DRPA), which is a strategic reaction to the increasing number of bad loans. It is also one of the largest retail NPL transactions in Romania and an important step towards a solution for the growing level of such loans. Through this transaction, the IFC also supports the consolidated budget of Eurobank, said Manuel Reyes-Retana, IFC Portfolio Manager for Financial Institutions Group in Europe and Central Asia.

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