Greek Bank Attica Leads Way to Cut Bad Loans and Bolster Capital
- Securitization helps lender kill two birds with one stone
- Deal will put bank back on the map, CEO Pandalakis says
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Greece’s larger banks can take a leaf out of Attica Bank’s playbook.
While the country’s four big banks are struggling to shrink their non-performing exposures, smaller lender Attica Bank has become Greece’s first to turn to securitization as a way to both shrink its bad loans and close a capital shortfall. The Athens-based bank is using the services of Aldridge EDC Speciality Finance -- an investment firm specializing in distressed assets created by Erik Fallstrom, co-founder of bad-loans advisory firm Hoist Finance AB, and Andreas Tuczka, a former managing director at Lone Star.