About 40 billion euros worth of loans corresponding to 800,000 borrowers have been arranged over the last five years by Servicers, according to data presented by doValue CEO Tasos Panousis speaking at the 5th NPL Greece conference. The servicers in Greece manage loans that exceed 90 billion euros and which correspond to more than 2.4 million debtors.

In 2024, it is estimated that we will have settlements of more than 5 billion euros, Mr. Panousis estimated, pointing out that of the total recoveries of the ECHR, 80% comes from regulations and consensual solutions and only 20% concerns recoveries from auctions.

“Our main goal is and remains to proceed with sustainable arrangements. Only with sustainable solutions will the problem be smoothed out for both the country and the economy and especially for the borrowers. And only with sustainable solutions can economic normality be restored. It’s not just a goal. It is common practice and governs our entire operation. An arrangement that the debtor can service restores a healthy relationship and creates a steady stream of income. On the contrary, enforcement is time-consuming and has high costs and is not beneficial to anyone in terms of regulation,” said Mr. Panousis.

It is indicative that at least twenty (20) successful debt settlements correspond to each one (1) auction conducted. It is recalled that in 2023, 83% of loans settled included debt cancellation, he added.

The critical role of updating data

“For an arrangement to be reached and to proceed, the cooperation of the borrower is required. His involvement in any settlement discussion is therefore extremely critical. It is very important to mention that communicating with borrowers becomes difficult if we consider that only 50% of them have updated their information in our database. This has the result that it is not possible to proceed with arrangements for 50% of the borrowers included in our portfolios, for the reason that due to a lack of data they remain “unknown”. It is therefore necessary for borrowers to understand the importance of updating their personal information, so that it is possible to communicate with them,” said Mr. Panousis.

He also added: “We also need the help of the State and that is why we supported and will continue to support every effort. Our goal is to combine the State’s measures with our own efforts to strengthen transparency and more complete information for borrowers. After all, we have the same goal, solving the problem of private debt in a way that is sustainable and beneficial for both debtors and investors and the economy.

In this direction, we work closely with the State and all competent bodies and have launched a series of tools aimed at all categories of debtors, who seek to settle their debts. Particularly important is the application of the electronic information systems (platforms) created and operated by the servicers, providing personalized and detailed information to the debtors”.

In addition, the modernization and improvement of the out-of-court mechanism, said Mr. Panousis, contribute to more efficient management, transparency and improved services to debtors.

“We seek to upgrade our electronic infrastructure, using AI technology, which will allow us to strengthen communication and interaction with stakeholders and, with the implementation of each new model we adopt, to improve our operation for the benefit of both of our customers and employees, to become more productive and more efficient.

  • Transactions are expected to continue dynamically in 2024. They are estimated at 13-14 billion in total, of which 10 billion concern transactions in the primary market and 3-4 billion transactions in the secondary market.
  • With regard to doValue Greece in particular, we believe that in 2024, with the investments we have planned in new digital platforms, but also the expansion of our operations in other financial sectors, we will be able to successfully respond to the ever-increasing demands of the time”.