Intrum Hellas – forging a new way of working in Greece
The deal between Intrum and Piraeus Bank to carve out the bank’s internal loan servicing division created the largest credit management platform in Greece.
In the first deal of its kind in the Greek market, Piraeus Bank and Intrum agreed a carve out of the bank’s loan servicing division. The platform, Intrum Hellas, started with €28bn assets under management and nearly 1,000 employees.
Announced in June 2019, the deal completed four months later. Piraeus retained a stake in the new company, as well as in a separate real estate owned (REO) management company, giving the bank the chance to share in future returns.
As part of the transaction, Intrum Hellas has entered into a long-term servicing agreement with Piraeus. The deal covers all types of loans (consumer, mortgage, SME and corporate) and their full lifecycle. However, the assets serviced remain on the bank’s balance sheet.
The partnership has delivered significantly enhanced operating efficiency to Piraeus and has facilitated faster NPL reduction, allowing the bank to focus on its core business as well as benefiting from its minority stake in Intrum Hellas.
About Intrum
As a market-leading credit management company, Intrum has wide-ranging expertise in debt collection services, and we do business in 24 countries in Europe plus Latin America (Brazil). We have more than 10,000 experienced employees in our group.