The new bill in the market of servicers is expected to trigger a series of developments. The Greek market is reportedly one of those markets in Europe with the strongest mobility in this sector.
A total of around 15 billion loans are expected to come to the market in 2024 through securitizations or other means (sales, etc.) provided that all the loans that will enter into Hercules III program as well as the sales of loans held by PQH will be included.
It should be noted that loans of 3-4 billion euros will be transferred to the secondary market.
However, developments signal a great concentration in the sector which will result in acquisitions and mergers of companies. Everything is on the table, according to market sources, since the costs for the management companies have significantly increased following the new draft law.
The creation of a digital platform for communication with customers, which should be ready by 31/3/2024, will require large investments and know-how.
At the same time, the new law mandates the re-evaluation of all licenses granted to servicers in 2024.
10-billion-euro serviced loans in the next five years
The main change that servicers expect in 2024 relates to the SSM as the idea of selling serviced loans from their portfolios to banks begins to mature.
Already, as market sources reported, the management companies hold serviced loans that have been in this situation for at least two years.
In fact, they stated that once the green light is given, there will be a win-win situation for both management companies and banks. These loans will be sold to the banks at 70%-90% of their value, while the loans of the banks will be significantly increased with advantageous terms at a time when interest rates make it almost prohibitive to finance companies and individuals.
According to servicers, 15%-20% of the loans that the management companies have in their portfolio will be serviced, that is 7-10 billion euros of loans, in a period of 3-5 years.
In the current phase, loans move at 5%, that is, around 2 billion euros.
