Key Considerations For Structuring And Managing NPL Portfolios In Greece

Greek banks are under significant pressure to dispose their non-performing assets. They can choose between Greek Securitization Law and NPL Law to sell massively their loans. Greek Securitization Law is expected to gain ground in view of rumored future developments in the Greek NPL market.

In any case, after the acquisition of the loan portfolio comes the recovery process which determines the success of an NPL transaction. Various risks can be hidden in both consensual and legal recovery. Despite the recent reforms towards an investor-friendly legal framework, certain debtor-protection rules still pose challenges for investors.

A. Loan portfolio acquisition

Greek systemic banks face significant pressure from supervisors (i.e. the SSM) to cleanse their balance sheets of NPLs. The goals set by supervisors are quite ambitious and demand prompt and bold action. To this end, Greek banks can choose between the new Law 4354/20151 (the so called "NPL Law") and the