According to data from the “Union of Credit and Credit Management Companies”, the Greek association that brings together the primary credit servicers, out of a total of 86 billion euros of NPEs, the payment agreements made so far concern 25.5 billion euros, but of these the active ones that have not currently defaulted are just under 19 billion euros.
This data is confirmed by the Bank of Greece, which highlights how the debt repayment agreements concern 27.6% of the total NPEs entrusted to servicers by the funds that acquired them through securitization or direct acquisition operations.
It should be noted that these debts represent 79% of the debts managed by servicers, while another 21% concern debts still present on the banks’ balance sheets.
The debt-collection difficulties are mainly due to the fact that the most significant part of the volumes managed, equal to 73.9%, is represented by bad loans, while the 18.7% share is made up of loans overdue for more than 90 days.
The remaining part is characterized by positions that present risks of default in the short term.
Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.