NLB sells bad loans in the amount of EUR 396 million

Nova Ljubljanska Banka (NLB) has sold its problematic receivable portfolio of companies in Slovenia and the Balkans in the total amount of EUR 396 million. The remaining part of the portfolio is still being negotiated.

According to unofficial information of Ljubljana’s Dnevnik, the buyers are the American fund Pine River Capital, the Swiss distressed asset management company DDM Group and the Czech APS Holding.

The sale agreement was made on Wednesday, June 29, and the process itself started at the beginning of October 2015. According to the portal finance.si, the bank has unofficially started selling the package of receivables due from natural persons in Slovenia, which will be followed by receivables due from Croatian clients, whereas there was no interest in receivables due from Serbian and Bosnian clients.

The average discount on receivables was around 75%, and nothing is known about the loans themselves, except that among them there are those which haven’t been paid for several years.

The total value of receivables to NLB available for sale is around EUR 650 million. Following the sale, the share of bad loan would drop from 20 to 11%, report the portal Finance.