The sale affects 1,809 “predominantly non-retail secured and unsecured” loans and 1,082 borrowers as per May 31, Hellenic said in a statement on the website of the Cyprus Stock Exchange on Wednesday.

“The transaction is not expected to have a material impact on the results and the capital position of the bank as a result of the provisions made concerning the assets in question,” the bank added. “The transaction is in accordance to the bank’s strategy of repairing its balance sheet and at the same time, it is in line with the European Central Bank’s (ECB) guidelines on the management of non-performing loans”. 

In a separate statement, B2Kapital said that it will get in touch with the affected buyers, guarantors and collateral providers, as provided by law.

“Cooperative borrowers will benefit the most from the completion of the purchase as they will be offered custom-made solutions such as extension to the debt repayment, low interest rates,” B2Kapital said and added that it may also resort to writing down interest or even part of the debt.

B2Kapital, which received the required licence to buy loans from the Central Bank of Cyprus last month, added that those who are in position to settle their debts immediately, may enjoy additional benefits.

Source: Cyprus Mail