NPL acquisition could lead to control of firms by funds

Investment funds are set to take over Greek enterprises that are still in operation, as banks are determined to proceed to the sale of their nonperforming loans.

Lenders have targeted the sale of bad loans not only of very small businesses but of small and medium-sized enterprises (SMEs) too, as they are loans that come with collateral, making them more attractive to funds. The guarantees mostly concern real estate assets, which include corporate installations and owners' personal properties.

The sale of bad loans, especially those of SMEs, will constitute a key strategy for banks this year and next, as this is the category of companies where lenders will place emphasis.

According to the law passed in the context of the fourth review, banks can sell corporate loans without having to propose specific settlement solutions to the indebted firms. Banks are now only...