Eurobank decides PIMCO, doValue bids for FPS both acceptable, sources say

Eurobank's board concluded on Tuesday that competing offers by US funds group PIMCO and Italian bad loan specialist doValue for the Greek bank's loan-recovery unit FPS were both satisfactory, banking sources told Reuters.

European Central Bank (ECB) supervisors have been pushing southern European banks to shed loans that turned sour during the last recession. With economic growth in the bloc faltering again, they are keen for lenders to step up their efforts.

A final decision would be made after the Greek parliament approves legislation on non-performing loans, known as the Hercules asset protection scheme, the sources said.

The parliamentary vote on the scheme is expected later this month.

Eurobank, Greece's third largest lender, has pledged to quickly cut the problem loans that make up more than a third of its lending portfolio.

Loan recovery...

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