September 25 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Monday it is considering minority investments in non-performing loan (NPL) servicers and/or portfolios alongside other commercial investors in Central, Eastern and Southeastern Europe (CESEE).
The transition effects of the proposed NPL Resolution Framework includes reduction in NPLs which will help clean up banks' balance sheets, free up capacity for new lending and contribute to greater financial stability in the region, EBRD said in a statement.
"EBRD's investments under the Framework will foster greater competition, transparency and liquidity in the Region's nascent NPL market," the bank added.
The total cost of the project is estimated at 300 million euro ($356.2 million).
($=0.84221 euro)