OpenCalais Metadata: Ticker
Piraeus Bank has concluded a deal with Sweden's Intrum to create a company to service its bad-loan portfolio, it said on Wednesday.
Bad loans are the biggest challenge facing Greek banks, the legacy of a crippling debt crisis which shrank the economy and sent hundreds of thousands into unemployment, constricting the ability to repay debt.
Properties worth hundreds of millions of euros are expected to come on the market in the next few months as banks and the investments funds that have acquired portfolios of loans secured against property assets are picking up the pace in this process to make the most of improving conditions and institutional investors' appetites for more and larger properties, so as to secure higher prices.
Piraeus Bank will launch a reward program for borrowers with home loans who service their debt regularly and have no arrears, Greece's largest lender by assets said on Tuesday.
The move is an attempt to embed a culture of paying on time in a country where many borrowers struggled to service their debts during the country's economic crisis.
Piraeus Bank grew second quarter net profit as provisions for impaired loans decreased, Greece's largest lender by assets said on Friday.
Piraeus Bank, which is 26.2 percent owned by the country's HFSF bank rescue fund, reported a net profit from continued operations of 20 million euros ($22.29 million) after net earnings of 14 million in the first quarter.