Eurobank FPS to be renamed doValue-Greece after sale

Eurobank’s loan servicing unit FPS, which is being bought by Italian debt recovery firm doValue, will be renamed doValue-Greece, Eurobank said on Monday.

Eurobank, Greece’s third-largest lender, has agreed to sell 80% of FPS to doValue along with a chunk of mezzanine and junior notes from a 7.5-billion-euro bad-loan securitization dubbed Project Cairo.

Under a 14-year deal, Eurobank will transfer the servicing of all its nonperforming exposures (NPEs) as well as the servicing of all loans that are less than 90 days in arrears.

On top of this, doValue-Greece, with a staff of 1,000, will continue to service the €7.5 billion soured-loans portfolio, the largest bad-loan securitization that Eurobank has completed in Greece, as well as Eurobank’s other bad-loan portfolios.

Out of more than €26 billion of impaired loans being serviced by doValue Greece, 40% relate to Eurobank loans and the remainder to other parties.

[Reuters]