June 19, 2024

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What changes in the management of red loans for 2.4 million debtors?

What changes in the management of red loans for 2.4 million debtors?

They change hands» Red loans 2.4 million Debtors Which is actually managed by them Servants, With the imminent reclassification of the market, which will bring a new round of acquisitions and mergers in this sector.

The tendency towards greater concentration has become more evident than ever, both due to the large number of companies on the Greek market (initially there were 23 but already reduced to 18) and due to developments in the institutional framework, on the occasion of the New Year. Operating license renewal until the end of June.

Discussions have long begun between companies already active in the red loan market, which want to stay “in the game” – income from management fees alone ensures not only their survival but also their profitability. Some minors cancel the vacancies themselves, in voluntary concession to the supervisor. Others lean towards this direction, but it has not been officially announced. What is certain is that the seeds of change in the entire market have been planted and a wave of consolidation is just around the corner.

The first connections are made in the name of merging. After the important event on June 30, it will be clear how many services will remain and which ones will open dialogue about new schemes. In view of the conjunction of forces – after all, management has not only income, but also costs and difficulties in realizing business plans – the debtor is expected to benefit. After all, this is what is required today from borrowers with delinquent debts, who want to settle them, not lose their properties from auctions and at some point return to bank lending.

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Of a debt of up to 90 billion euros, which, although it has left the balance sheets of the banks, remains under control, but not in the red, weighing on the broader economy, as long as it continues to flourish. Hence the repeated recommendations of the Governor of the Bank of Greece, whether regarding the need to reduce further bad debts or to restructure loans and return them as they are now to the system.

In theory, the mergers that will take place in the second stage will lead to better treatment of the debtors themselves. Greater transparency and flexibility but also terms of service and debt settlement, from larger schemes that will benefit from synergies and cost savings. This can translate into better borrower-focused management terms. Similar flexibility, transparency and favorable payment terms will be offered – competitively – by smaller players in the market.

In any case, the 90 billion euro cake will change, and the red loan portfolios of millions of debtors will be consolidated, meaning they will be placed under the supervision of a new manager. Big and small will remain companions in the goal of recovering bad loans, which poses no risk of derailment over the next five years, but for the sixth or seventh year, it is not guaranteed – at least for the first securitizations made in the market.

Today, recovery objectives are consistent with the outlines of business plans and in fact, with an emphasis on regulations, 80% of
Total recoveries are made through this route. Services available so far are doValue, Intrum, Cepal, Qquant, EOS, UCI, DV01, APS, Vereltis, NPA, MountStreet, SFS, Thea Artemis, Hipoges Hellas, Silverton, EUPraxis, Copernicus, Resolute and Hoist, Pepper, Cerved, SFS , which according to the information, has already voluntarily granted the operating license.

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It should be noted that in a completely opposite direction to those planning to leave the market, a new company comes to take a stake, activating the operating license of the former Pillarstone company. It is the Hellenic finance of Anthimos Thompoulos, which cannot be ruled out in a second phase, to launch the restructuring and refinancing market, which today is completely non-existent.

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