Non-bank NPLS to total over 50 bln euros in 2-3 years, Eurobank official says

Companies handling loans will be called to manage a market of over 50 billion euros in non-performing loans (NPLs) not related to banks in the next 2 to 3 years, Tassos Panoussis, General Manager, Retail NPL Management and CEO of Eurobank FPS said on Tuesday at a Capital Link conference.

Panoussis said that currently ex-bank system loans total nearly 20 billion euros, but based on plans Greek banks have submitted recently to SSM, the amount of loans that will be sold or securitized by 2021 total over 30 billion euros. This leads to the conclusion that there will be a 50-billion-euro or more market in loans under management in the next 2 or 3 years, he said.

Up to now, the Eurobank official said, 18 loan management companies have been licensed and are supervised by the Bank of Greece, but there are more waiting for licensing. A total of 2,000 individuals are staffing them, but their number is expected to more than double the next few years, Panoussis noted.

Asked why the loan management companies would be able to handle NPLs more effectively than banks could, he said that banks are bound by EBA rules. Their role is to provide liquidity and accept deposits, not to go after outstanding loans, he added.