Greek NPL momentum builds

05 December 2017

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Debtwire is pleased to present Greek NPL momentum builds, published in partnership with Ashurst. Based on a survey of 50 senior-level executives, the report presents an overview of the Greek non-performing loans (NPL) market, analysing the drivers of the potential sellers and the motivation and priorities of the investor community.
 
Key findings include:
 
  • Greece firmly at the top of the European investor agenda. 84% of investor respondents ranked Greece in their top two Southern European target investment countries for the next 12 months. Furthermore, investors reported that they were very (55%) or moderately (35%) likely to consider Greek NPL transaction opportunities coming to the market in the next 12 months.
  • It's not a matter of if - it's a matter of when. 75% of respondents from Greek banks state they believe it is very likely that their institution will bring an NPL book to market in the next 12 months and 25% report this is moderately likely.
  • Remaining obstacles. The challenges identified by the Greek banks include, on a relatively consistent basis, (i) a mismatch of pricing expectations between sellers and investors, (ii) a lack of sufficient loss provisioning, (iii) the cumbersome and lengthy Greek legal enforcement framework and (iv) the potential criminal liability for bank officers approving consensual restructurings.