CrediaBank is moving forward with the acquisition of a loan portfolio with a gross book value of approximately €37.4 million, paving the way for more than 800 borrowers to re-enter the banking system. The portfolio, known as “Jewel,” consists primarily of mortgage loans that were previously classified as non-performing but are now being repaid regularly. The transaction is considered groundbreaking for the Greek market, as — according to the bank’s announcement — it marks the first time a portfolio of re-performing mortgage loans has been transferred directly to a credit institution. The loans originate from securitizations under the “Hercules” program and are currently managed by Cepal Hellas, which will temporarily continue to service them until the transfer to CrediaBank is complete.
CrediaBank: What the €37.4 million portfolio includes
The “Jewel” portfolio consists mainly of mortgage loans that previously experienced repayment difficulties. However, these obligations have since returned to full performing status, in accordance with the criteria set by the European Banking Authority.
The selection of loans was not automatic. A detailed assessment of borrowers was carried out beforehand to determine the final composition of the portfolio and to verify that all required conditions were met. This move carries particular significance for those who had been shut out of conventional bank financing due to past debts, despite having since restored their payment track record.
More than 800 borrowers transition to the bank
With the acquisition of the portfolio, CrediaBank is expected to add more than 800 individuals to its client base. The bank’s goal is to build broader banking relationships with these customers, offering services that can address a wider range of financial needs. According to the bank, the deal strengthens its retail banking operations and balances growth prospects with prudent risk management. Management also believes this initiative can help restore creditworthy borrowers’ access to the banking system, following a period during which their loans were held off bank balance sheets.
Cepal’s role after the agreement
Cepal Hellas will not immediately cease managing the loans in question. It will remain responsible for a brief transitional period following the completion of the transaction, until the loans and related services are fully transferred to CrediaBank. This process is designed to ensure uninterrupted service for borrowers, with no disruption during the handover from the servicer to the bank.
Transaction advisors
PwC M&A Consulting Services acted as financial advisor to CrediaBank, while legal support was provided by the law firm “Vyzas – Grigoriadou & Associates.” The transaction forms part of CrediaBank’s broader strategy to strengthen its retail banking footprint and capitalize on loan portfolios that have returned to performing status.
