EOS Group, IFC Partner to Resolve Non-Performing Loans, Boost Lending in Poland
- New €275 million facility to purchase and resolve NPLs in Poland
- Project will build resilience of banking sector and foster new lending
- Strong focus on environmental, social and governance aspects
A new €275-million platform in Poland will help financial institutions resolve their non-performing loans (NPLs), freeing up capital for new lending, allowing individuals and businesses to restore their creditworthiness, and bolstering the country’s banking sector.
Co-funded by IFC and EOS Group (EOS), the new facility focuses on the acquisition and resolution of non-performing loans of retail clients, small and medium enterprises, and real estate-owned assets (REOs) held by financial institutions in Poland. The new facility incorporates environmental and social standards into its NPL resolution practices, in line with IFC's Performance Standards. These include objectives such as preventing environmental damage when working with real estate, ensuring borrowers are treated fairly and responsibly.
"Together with our partner IFC, we are delighted to be able to expand our cooperation in the important NPL market in Poland and thus strengthen our activities as a sustainable investor," said Carsten Tidow, Managing Director of the EOS Group and responsible for Eastern Europe. "As one of the largest and most active NPL markets in Eastern Europe, Poland is a particular focus for EOS. In addition to the positive contribution to the Polish economy, the consideration of environmental, social and governance aspects continues to play a major role in the selection and resolution of NPLs."
The new facility is part of IFC’s Distressed Asset Recovery Program (DARP), which focuses on the acquisition and resolution of distressed assets across emerging markets. The $9.1 billion global investment program includes commitments of $3.2 billion on IFC’s account and $5.9 billion mobilized from private sector investors.
The project will be the third engagement of IFC and EOS, following the creation of a facility in 2010 to purchase and resolve unsecured retail NPL portfolios, and a €129 million regional facility to help financial institutions resolve their NPLs in Bosnia and Herzegovina, Croatia, Romania, and Serbia in 2022.
"IFC is a market leader in distressed asset acquisition and resolution in emerging markets,” said Ariane di Iorio, Global Head of Distressed Assets Investments at IFC. “By supporting distressed assets markets in our target countries sustainably and ethically, we help financial institutions return to their core lending businesses and normalize NPLs so borrowers can become creditworthy again.”
“Ethical debt collection has always been at the core of our business, thus integrating sustainable investment into our processes is a natural next step,” said Dariusz Petynka, Managing Director of EOS Poland. EOS has been active in the NPL market in Poland for over 25 years. “Over the past few years, we have been fortunate to make very significant investments in NPL portfolios in Poland. The cooperation with IFC will allow us to strengthen our position as one of the leading players in the Polish market,” said Borys Drajczyk, Member of the Management Board, Chief Investment and Technology Officer at EOS Poland.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit
www.ifc.org
About EOS Group
The EOS Group is a leading technology-driven investor in receivables portfolios and an expert in the processing of outstanding receivables. With over 50 years of experience and offices in more than 20 countries, EOS offers smart services for receivables management worldwide. Its key target sectors are banking, real estate, telecommunications, utilities, and e-commerce. EOS employs more than 6,000 people and is part of Otto Group. For more information on the EOS Group, please go to:
eos-solutions.com
About EOS Poland
EOS Poland is a team of experts specializing in the purchase and management of receivables. Using modern technological solutions, we provide financial services tailored to the needs of both our business partners and defaulting payers. We help to recover debts effectively, professionally and with due respect for ethical principles. We have been present on the Polish market since 1998. As a member of the Association of Financial Enterprises in Poland, we operate in accordance with the Good Practice Principles. For more information on EOS Poland, please go to:
eos-poland.pl