NPL Activity in Greece
How may be the Non-Performing Loans market going to grow in Greece in 2021? What are the opportunities?
The Greek NPL Market is considered to be probably the most promising in Southern Europe, ahead of Italy and Spain within the next upcoming years. The combined non-performing exposures of the four systemic banks in Greece is estimated to become of EUR105 billion using the largest NPL ratio within the Euro area at 47%. The Greek systemic banks came to an agreement with the ECB Banking Supervision to lessen this exposure by approximately 50% initially until 2021 granting in the meantime, an extension until December 2021. However, based on banking sources, the Greek Banks will keep on conducting NPL sale processes after December of 2021 as well. Greek loan portfolios have previously attracted investors, as the profit rate continues to be initially estimated between 10-15% IRR, and the first performance “numbers” be affected by it initial prediction. The opportunity within the Greek market is based on the large leeway of profit and this is exactly why Greece has attracted probably the most reputative investment funds in the world.
Can you detail any sort of industry-based challenges you are facing now and may do in the near future?
In the following 5 years, Greece's distress market will reach its peak as the transfer of an important number of the NPL exposures to investment funds makes business within this industry more flexible. Greece has already attracted the earth's biggest investment companies, most of which have previously entered the marketplace very dynamically. The reformed Greek distressed marketplace is likely to perform very well within the next years particularly in terms of time since investment funds apply more progressive methods and act inside a quicker manner. As well as that, you may still find many opportunities however NPL market, as the secondary market is likely to be formed very rapidly in the next years.
However, doing business in Greece requires experienced advisers both economic and legal, due to the particularities of the country's financial reality and legislation. Our firm continues to be one of the primary to be involved with such projects undertaking to supply foreign investors with legal counsel around the Greek Law to deeply understand its effect on their investment choices and techniques. After the initial involvement, our firm has become in a position to address these legalities related to this industry more proficiently.
What are the important elements of your firm's success?
Our firm deals with financially distressed companies, whose issues are incredibly complex when it comes to practice. A corporate lawyer will need a set of particular skills to face corporate issues. Within our firm, the key element to our success is the combination of our legal expertise and in-depth understanding of the economical environment, alongside our experience in the Greek banking sector. These components make us comprehend the needs of each and every client and try to promote the very best solution in every case.
Apart from that, we have formed a well-trained and trusted team that is always responsive. Our firm encourages every lawyer to consider initiative and develop their skills by urging these to do something forward. The special needs in our clients and the high amount of work demand the presence of such a team and personally, as a md, I always try to inspire and convey my experience to another generation of lawyers.
Contact details:
SERAFIM SOTIRIADIS
FOUNDER
SERAFIM SOTIRIADIS AND ASSOCIATES
4, LYKAVITTOU STR., GR-10671 ATHENS
TEL: +30 2103388812 FAX: +30 210 3388813
sotiriadis.s@ssotiriadis.com
www.ssotiriadis.com/en/
Serafim Sotiriadis, Attorney at Law, the founder and inspiration of “Serafim Sotiriadis and Associates”, is widely acknowledged as certainly one of Greece’s leading experts in the fields of Bankruptcy and Business Restructuring Law. He is really a graduate of Athens School and a member of the LAA since 2001. A professional in main debt restructuring and insolvency, he frequently lectures on corporate reorganization and also the restructuring of loans from banks, having been personally involved with probably the most significant cases to possess taken place in Greece.
“Serafim Sotiriadis & Associates” was the very first law firm in Greece to ensure that you submit and ratify a “rehabilitation agreement”-a document which has served like a reference point for all those that followed. Rehabilitation Mechanisms are the primary collective pre-insolvency procedures; their aim is to restructure a company's debts without overlooking the collective satisfaction of its creditors.
