One in three loans owed by households and corporations are already owned by foreign funds, fueling their growing presence and turning them into vital players in economic developments. By the end of the year, in fact, they are expected to control 50% of entire private sector debt.
The sum of the credit system loans, serviced or not, comes to 155 billion euros according to end-March data, with €43 billion of that already in foreign hands. By year-end, and after the conclusion of the securitizations planned by the four systemic banks, that sum will rise to €70 billion, and is set to grow further next year, which is when the streamlining of banks’ financial accounts will have been completed through the state asset protection mechanism known as “Hercules.”
The increase in the volume of loans being passed onto funds is marked by the completion of National Bank’s transactions for the “Frontier” package amounting to €6 billion, the Sunrise 1 and 2 securitizations by Piraeus and the Mexico package securitization by Eurobank within this year.
Alpha and National have planned sales and securitizations worth over €10 billion next year.