IFC, EOS Partner to Help Resolve Non-Performing Loans, Boost New Lending in Southeast Europe

A new regional platform will help financial institutions resolve their non-performing loans (NPLs) in Bosnia and Herzegovina, Croatia, Romania, and Serbia, freeing up capital for new lending and allowing households and businesses to restore their creditworthiness, which has become critical as countries continue to face pressures to recover from the COVID-19 pandemic.

Co-funded by IFC and EOS Holding GmbH (EOS), the EUR 129-million platform—DARP NPL EOS II—is part of IFC's Distressed Asset Recovery Program (DARP), which focuses on the acquisition and resolution of distressed assets across emerging markets. The new platform will acquire and resolve non-performing portfolios of secured retail loans, small and medium enterprises (SME) and corporate loans, and real estate owned assets (REOs) held by financial institutions in the target countries.