Czech distressed asset investment management and servicing company APS Holding signed an agreement with the International Finance Corporation IFC, which will provide the Czech firm EUR 20 million to co-purchase distressed asset portfolios, including retail and mortgage loans, as well as loans to small and larger companies.

The company plans to buy such assets in Romania too, where the partnership could resolve up to 30,000 problem loans, by removing these assets from banks' balance sheets, and freeing up capital for new lending, according to the World Bank, IFC’s parent group.

APS Holding, headquartered in the Czech Republic, will buy up NPLs in Bulgaria, Montenegro, Romania, Serbia, and potentially other countries in Eastern and Southern Europe.

The loan is part of IFC’s Debt and Asset Recovery Program (DARP), which focuses on the acquisition and resolution of non-performing assets, refinancing of viable entities, and restructuring of small and medium enterprises.

So far, IFC has committed over USD 1 billion for its own account and mobilized other USD 2.7 billion for this project.

editor@romania-insider.com