KBC sells almost the entire portfolio of loans with repayment problems in Ireland. These are loans worth around 1.1 billion euros, the Belgian bank-insurer announced on Monday for the stock exchange. Earlier this year, KBC already had an agreement with the Bank of Ireland to take over its healthy loans in Ireland.
The problem credit transaction is financed through funds managed by CarVal Investors. Upon completion, Pepper Finance Corporation DAC will manage the credits as the legal holder of the title title. Pepper is supervised by the Central bank of Ireland. Nothing will change for KBC Ireland’s customers, as the press release says.
For KBC, there is an impact on the profit and loss account of approximately 100 million euros, which will be booked in the third quarter. RWA decreases by 800 million euros.