The €900 million (or €450 million book value) Virgo portfolio transferred to doValue is transferred to the EOS Group investment fund. The Virgo portfolio is part of the Frontier I securitization implemented by the National Bank with doValue as an investor, and the transfer of part of the portfolio to the secondary market, i.e. from doValue to the EOS Group, serves the need for a preliminary increase in income from loan collection in order to achieve the goals set out in the business the company’s securitization plans.

The investment by the German NPL management group is the first in Greece for NPLs and according to a statement from a board member. The EOS Group responsible for the Eastern Europe region, Karsten Tidov, “is a significant investment in one of the largest NPL markets in Europe.” As announced, doValue Greece will continue to manage the portfolio during the transition period. The EOS Group has been active in the Greek NPL market since 2005 through its management company EOS Greece, which it maintains in Greece.

The transition to the secondary market meets the need for an initial increase in income from the collection of loans.

It is recalled that “problematic” in terms of their fees are mainly the first securitizations to join the “Hercules” (Cairo I and II), whose business plans were drawn up before the start of the pandemic. Suspension of payments on the loan and the widespread “freeze” of auctions caused by the lockdown of the economy have led to a backlog in the planned fees, which may activate the provisions foreseen in Hercules. doValue, which is an investor in two securitizations, has applied for an extension of the business plan’s objectives for another 6 months, an opportunity provided by the Hercules Act, after approval by the Treasury Department.

The company’s two-year deadline to meet its business plan’s goals is reportedly set to expire in early 2023, and the extension, if approved, would give doValue a new window of time ahead of Hercules provisions that call for a suspension of up to and 20% of the commission charged by the company. .

The Hercules regulations also provide that if, at the date of payment of interest on mezzanine bonds, the total amount of collections made since the beginning of the portfolio management does not reach 20% of the amount budgeted, payment of at least 20% of interest will be deferred.