Opportunities for investments over 3 billion euros, with limited risk due to market maturity, are expected to be created in the near future in the non-performing loan management market, attracting new investment funds in addition to the funds that have already entered the Greek market.
Mr. George Georgakopoulos, Managing Director of Intrum Greece, speaking at the Smith Novak conference on NPL Europe, which takes place today and tomorrow in London, said that to date in the domestic market have been placed about 2.5 billion euros through the market NPEs and € 0.5 billion through the acquisition of interim securities under the securitizations that have taken place.
Mr. Georgakopoulos noted that there is interest from funds that “see” the Greek market but were not placed in the first wave of transactions. In the secondary market that is starting now due to the securitizations that have been implemented and the liquidation plans that include them, there will be a next wave of transactions with investments that are expected to exceed 2 billion euros, he estimated.
He added that investments of more than 1 billion euros will take place in real estate related to non-performing loans. Real estate will be of great interest for the next two to three years as prices remain very competitive, he said.
The characteristics of the next phase of investments in the market of Greek NPLs are on the one hand, that there will be lower returns as macroeconomic risks have now been reduced, as well as the risks that existed in a market that had not yet formed in the first phase. .
The fact that there is a structured market, with servicers providing high quality services, with legal and consulting support, that is, an entire support ecosystem, that is, can attract significant investments, stressed the head of Intrum in Greece.
In the same context, sales of sectoral loan portfolios that aim at improving the competitiveness and operational restructuring of companies, attract interest from funds and business groups in the same sector, said Mr. Georgakopoulos.
Intrum is “running” a process of selling a hotel loan portfolio and is preparing similar projects for various industries, finding great investment interest.
Asked about the possible impact of the war in Ukraine and inflation, Mr. Georgakopoulos replied that, according to an analysis by Intrum, it is expected that there will be a reduction in the purchasing power of Greeks by 5-7%, due to the explosion in its prices. energy and food, but without affecting, as shown at this stage, loan repayments.
Regarding the European NPLs market, the Managing Director of Intrum Greece, pointed out that as banks become more and more focused on basic banking, the market growth prospects will increase, such as, for example, Unlikely To Pay loans or complex cases will be transferred to servicers for management.
Source: Capital
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