Representatives of foreign funds are looking to take advantage of the “red” loansĀ held by Greek banks and are already setting up offices in Athens, according to the Real News newspaper.
According to the report, representatives of foreign funds have been looking at bad loans accumulating in Greek banks for the past four years. Several of them have already made contact with bank executives examining the possibilities of taking over these loans.
After the third bailout deal was signed, Greek banks have been put under the microscope for excessive debts ofĀ large and medium companies amounting to a total of about 45 billion euros.
Creditors believe that a big part of red loans are not settled because the debtors are businesses that have close ties with Greek politicians and top executives of the banking sector, thereby they avoid repaying the loans.
Banks have started new contacts with foreign investment funds to collaborate on two areas: First, cooperate with companies specializing in bad-loan management. In this case, the bank will not sell the loan, but let the foreign company deal with the borrower.
Second, sell the loans directly. The problem in this case is the transfer price. The value of real estate properties that has been put as collateral has sunk so low that foreign funds offer 20 euros for every 100 euros of the loan.
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