Welcome to Part One of our four-part Blog Series featuring the impending Loan Sales that are happening with European Banks.
As we come out of the third lockdown, the banks are having to start facing issues in the real world.
What they are doing straight away (especially in Spain) is two things:
- Consolidating and merging. La Caixa and Bankia have now merged and,
- There is also the ongoing saga of BBVA and Sabadell who are contemplating merging.
What is more worrying is that across Europe, (including Cyprus) Loan Sales are impending. Banks are looking to avoid what they call delinquent or troublesome debt and anything that is hard work for them. Selling these debts off at a discount to what are called ‘Vulture Funds’
EU Property Solutions implore that people to try and keep control when there even a sniff of this because dealing with people that buy the loans are Vulture Funds, who are a lot stronger than banks.
They are very good on a cross-jurisdictional basis and with litigation. They want their pound of flesh and they are not going to wait forever! Vulture Funds are short-term investors seeking recovery on their funds and they are pretty brutal in their attack.
That said EU Property Solutions have dealt with a number of Loan Sales situations when vulture funds are involved.
So, we advise you against waiting for this to happen and to take action today!
Keep an eye out for Part 2 of our Loan Sales Blog Series to find out more!