APS Cyprus which is a member of the APS Holding a.s. group of companies, will manage the bank’s non-performing loans (NPL) and real estate assets.

All required regulatory clearances have been received and the transfer was made on July 1, the bank said.

APS Cyprus is acquiring the operations of the bank’s internal Arrears Management Division (AMD), including the necessary resources to independently carry out the servicing of non-performing loans and real estate assets.

Simultaneously, the bank has executed a 10-year service level agreement with APS Cyprus for the management of the bank’s non-performing loan and real estate portfolio. The bank retains the ownership of the portfolio.

APS Cyprus is 51% owned by APS Holding and 49% by the bank. APS Cyprus will assume all operating expenses associated with the management of the bank’s NPL and REO Portfolio including but not limited to the costs of payroll, IT licences, processes, products and services.

Some 129 employees from the bank’s AMD are moving to APS Cyprus while additional resources, expertise and knowhow will be brought in as needed to further enhance the capabilities and capacity of the operation.

Non-performing loans with a value of approximately €2.3bn and real estate assets with a value of approximately €150m will be managed by APS Cyprus for an administration fee payable by the bank to APS Cyprus.

APS Holding is a leading company in the management and recovery of loan portfolios and real estate within central and south-eastern Europe. Founded in 2004, APS Holding is headquartered in Prague.

Source: Cyprus Mail