The goal was to have results in restructuring these nonperforming loans by the end of the first quarter of this year, but only now will the platform start managing these credits.
CGD, BCP and Novo Banco, the three banks that signed a memorandum to take part in the platform to manage nonperforming loans (NPL), have concluded the list of proceedings they want to transfer to the platform. The total amount of NPL that will be managed ascends to one billion euros.
The news were disclosed, this Friday, by the Portuguese newspaper Jornal Económico, quoting a source close to the process. According to that same newspaper, those one billion euros are “almost equitably” distributed by the three banks that joined the platform.
The list emerges around one month after the banks started contacting clients to have their defaulted loans managed together by the NPL management platform. As Jornal de Negócios disclosed, each banks’ employees are doing that job, since the platform cannot take over conversations, due to banking secrecy. By then, the platform was already working in facilities assigned by CGD.
The memorandum for accessing the Platform for Banking Credit Management was signed in September of last year by CGD, BCP and Novo Banco. The goal is to solve the nonperforming loans that these three banks have in their portfolios and shrink to one third the average amount of time it takes to restructure these loans, to six months.
However, the platform’s works are delayed. In September, expectations were that results would be seen by the end of the first quarter of this year (which is coming next week). But since the list of loans to be managed by the platform was only just concluded, works will only begin as of now.