Alpha to follow Eurobank’s NPL example

Alpha Bank is working on a plan for the securitization of its nonperforming loans and their management by an independent company to which the lender's competent staff will be transferred.

Kathimerini understands that the plan, named "Galaxy," provides for the securitization of NPLs worth over 10 billion euros and the concession of their management to a company that will also absorb some 700 staff from Alpha.

This is the so-called "carve-out" model based on splitting an activity from a company to form a new entity, which has been applied in countries such as Spain and Italy where banks had similar NPL problems. In the last 12 months this model has been adopted in Greece by Eurobank, while Piraeus has opted for a similar version.

Alpha will soon be putting this option to its board for approval so that it can launch procedures to find an investor. Viewed as the...