Credit risk

The governor of the Central Bank of Cyprus has dispatched crucial correspondence to banks and credit repurchase companies shedding light on the strategy for restructuring nonperforming loans (NPLs) and navigating credit risk management.

According to data from the union of loan and credit management companies (servicers), out of the total of 86 billion euros, the arrangements that have been made to date concern €25.5 billion and of these the arrangements that are being adhered to do not exceed €19 billion.

DBRS Morningstar upgraded Greece's credit rating to investment level on Friday, ending the country's bonds "junk status" after 13 years.

The Canadian-based rating agency, one of the world's four majors, became on Friday the first to bring Greece back to investment level since 2010.

Standard & Poor's refrained from granting investment grade to the Greek economy on Friday, but showed it intends to do so in its next rating action, as it upgraded Greece's outlook from "Stable" to "Positive," in a move largely expected by markets.

The significant move of the S&P Global Ratings to upgrade Greece's credit rating one notch on Friday reflect the positive trajectory of the Greek economy and its market confidence.

An agreement with the doValue Group was signed by Eurobank Holdings ("Eurobank") a) for the sale of part of the mezzanine notes bonds and the junior notes of the securitization of a mixed portfolio of non-performing receivables of Eurobank SA ("The Bank") with a nominal value of € 5.2 billion (€ 3.2 billion book value) ("Mexico" transaction) and (b) for the management of this portfolio by doVal

Maribor – Ratings agency Fitch has upgraded the long-term credit risk for NKBM, Slovenia’s second largest ban, from BB+ to BBB- with a stable outlook, citing the completion of the merger with Abanka, firm capital position and low share of non-performing loans.

Greece's creditors insist that online auctions of properties that are not the main residence of debtors need to resume as soon as the lockdown ends.

The secondary loan market is expected to grow in 2021 and rise far above the 100-billion-euro level, while the new securitizations already announced are set to top €20 billion, the Association of Loan and Credit Claims Management Companies (EEDADP) stated on Thursday, on the occasion of its second birthday.

Piraeus Bank has applied to the Hercules asset protection scheme that aims to reduce banks' exposure to nonperforming loans through their securitization.

The application concerns the securitization of Phoenix, a €1.9 billion portfolio of housing loans.

Piraeus' application leaves National Bank as the last of the "big four" Greek retail banks that has not applied to the scheme.