€4.6Bn of NPLs for sale

Caixa Geral de Depósitos, Montepio and Lx Partners have put up €4.6Bn of Non-Performing Loans for sale.

CGD is selling its portfolio Pluto with €150 million of assets, Banco Montepio has the portfolio Côa with €233 million, and LX Partners has €4.2Bn of assets.
At a time when the banking and financial system is expecting an increase in credit defaults because of increased interest rates, the banks and companies like Lx Partners that focuses on secured and unsecured consumer and SME debt, including performing, semi-performing and non-performing assets, residential mortgages, unsecured loans, bankruptcy proceedings, trade and other receivables, are putting their NPL portfolios, also known as credit defaults, for sale on the market with a view to clearing their books.
The definition of NPL is that the borrower is assessed as unlikely to repay in full without realisation of collateral; or more than 90 days have passed without the borrower paying the agreed instalments; or it is otherwise considered impaired in accordance with the applicable accounting framework.