The Loan and Credit Management Companies (EEDADP) has completed three years of operation and actively manages on behalf of banking institutions and investors loans over 110 billion euros, which come from different loan portfolios of all categories.
These are loans with deep arrears at the stage of advanced legal action, for debts that show a slight delay in relation to the agreed repayment period, but also for up-to-date loans. Managed portfolios include loans to individuals and companies, with or without collateral, from simple consumer to complex business lending, such as bond loans from multiple creditors.
The Union’s 2021 report notes that a key priority has been to provide effective regulatory solutions to households and businesses, with the aim of returning to a healthy economic cycle while supporting those affected by the pandemic. At the same time, EEDADP continued the constructive talks with the supervisory authorities and the competent institutions in Greece and abroad, highlighting important issues that affect the secondary market of Non-Performing Loans.
In 2021, the Union’s Management Companies made more than 84,000 loan arrangements, amounting to more than € 3.5 billion in portfolios that have been transferred and are off-balance sheet, giving thousands of borrowers solutions that include debt relief.
At the same time, they have worked out and completed on behalf of banking institutions a large number of loan arrangements that remain within the bank balance sheets, ensuring their long-term viability. Through Management Companies, loans amounting to more than 2.8 billion euros were reclassified in 2021 as “serviced” and returned to the sound banking portfolios of credit institutions.
According to the Union, in addition to the significant benefit that the above arrangements achieve for borrowers, the revival of lending as sustainable opens a new virtuous circle. The resale and return of such portfolios by their current holders to credit institutions through Management Companies is now a realistic prospect, which is expected to contribute to strengthening the growth rates of the Greek Economy. Through such a process, banks will increase their sound loan portfolio, while thousands of individuals and legal entities, which are currently outside the banking system, will regain access to bank financing.
The Members of the Union currently employ over 4,000 specialized executives, most of whom come from the banking sector. With their activity and under the supervision of the Bank of Greece, the Management Companies have now become a key pillar of the financial system, along with the Banks and the Insurance Companies.
At the same time, in 2021 EEDADP proceeded to important institutional interventions. With the assistance of its Members and their executives, the Union:
– Contributed to the preparation of the information infrastructure and the implementing legislation of the new Bankruptcy Code, as well as to the formulation of the secondary implementing legislation, achieving the creation of fully digitized procedures, such as the new Out-of-Court Mechanism, which is expected to debts in the future.
– Provided substantial support in the implementation of the Bridge I & Bridge II Programs, through which it was possible to regulate thousands of loans to individuals and companies. With the assistance of the Management Companies, loans in excess of 5 billion were included in the above support programs.
– Submitted substantiated proposals for the modernization of the legislation related to the efficiency of the management of Non-Performing Loans, contributing to the adoption of important reforms, such as the reform of the “HERACLES” Program.
The corporate social responsibility actions of EEDADP were also important. In particular, the Union:
– Supported the formulation of the Financial Literacy Program “@ xia”, which was implemented in collaboration with the Institute of Financial Literacy and aims to familiarize children with basic economic concepts. of the Ministry of Education to join the official educational program of Primary Education.
He donated equipment to voluntary firefighting organizations in collaboration with the Non-Governmental Organization “DESMOS”, contributing to the efforts to deal with forest fires and the consequences of the climate crisis.
– Implemented the Program “EEDADP Green | 1,000 Trees”, through which the employees of the companies (Members of EEDADP) voluntarily plant trees in reforested areas in Ymittos, with the aim of planting 1000 trees. “Let’s Do It Greece” campaign.
– Through transparency and strict observance of the supervisory framework, the branch of Management Companies will continue to contribute to the consolidation of the financial system and to the strengthening of liquidity conditions in the Greek Economy, the Union report concludes.
Source: Capital
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