According to Bloomberg, 3 US financial asset management firms are considering buying up to EUR €5bn in non-performing loans from Bank of Cyprus in connection of the bank’s project next month.
The 3 firms in question are Pacific Investment Management Co. (Pimco), Lone Star Funds and Apollo Global Management. Following this, Bank of Cyprus has named the project as Project Helix.
The Bank of Cyprus minimised its non-performing loans to EUR €8.3bn in March from EUR €8.8bn in December. Moreover, an external spokeswoman for the Bank of Cyprus who is based in London stated that the bank wishes to further minimise its delinquent loans stock through both organic and inorganic activity.
Back in May, the bank stated that it was targeting a EUR €2bn reduction in bad loans in 2018. In addition, Pimco guaranteed their participation in Hellenic Bank’s capital issue made necessary following the takeover of the Cyprus Cooperative Bank’s operations.