Eurobank's subsidiaries reach agreement with IFC and Kruk to dispose a portfolio of non-performing unsecured consumer loans to Romanian clients of €170m gross book value (€597m of total unpaid balances)

 Athens, 20 May 2016

Eurobank announces that today its Romanian subsidiaries Bancpost S.A. and ERB Retail Services IFN S.A, and its Dutch subsidiary ERB New Europe Funding II B.V., (the “Sellers”) have entered into a binding agreement (the “Agreement”) with ProsperoCapital S.a.r.l, funded by a consortium of investors consisting of International Finance Corporation and Kruk S.a. (herein the “Investors”)  regarding the assignment of a portfolio of non-performing loans of €170m gross book value (€597m of total unpaid balances) which represents  significant part +90 days past due stock of consumer unsecured loans (as at 31^st December 2015) held by Eurobank's Romanian Subsidiaries, comprises of revolving and term loan facilities issued to Romanian clients the (“Portfolio”). The assignment of the Portfolio (the “Transaction”) is expected to constitute the largest transaction of its kind in Romania till today.

Under the terms of the Agreement, on closing, anticipated no later than 1st August 2016, the Transaction will be profitable and capital accretive for Eurobank group of companies (the “Eurobank Group”), resulting to the realization of extra-ordinary gains. In addition, on closing, Eurobank Group will achieve a reduction in NPL ratios, risk weighted assets and operating cost associated with the activities (internal & external) of servicing the Portfolio.

The closing of the Transaction is subject to the approval of the Romanian Competition Council .The assignment of the Portfolio will take place after receipt of Romanian Competition Council's approval and payment of the consideration. According to the Agreement's provisions, the conditions precedents have to be met until the date of 1st August 2016. Otherwise, the Sellers and the Investors may either mutually agree to extend the closing of the Transaction beyond 1st of August 2016, or unilaterally terminate the Agreement.

The Transaction, as well as the transaction announced by Eurobank's Bulgarian subsidiary Eurobank Bulgaria A.D. on 18^th January 2016 involving yet another profitable assignment of NPL consumer unsecured loans of €72m gross book value (€144m total unpaid balance), comes as a continuation to Eurobank Group's strategy to de-risk the balance sheet and improve the NPL ratios.