Bank of Valletta has today announced that it is engaged in advanced negotiations to sell part of its portfolio of long-standing non-performing loans (Portfolio), with a view to strengthening its capital and liquidity buffers. In selecting the Portfolio of non-performing loans, the Bank has followed a rigorous process using predefined criteria.
Whenever the Bank's customers experience credit financing issues, the Bank always aims to identify workable solutions to reinstate the quality of the borrowings. However, in the case of the loan positions carried in this Portfolio, whilst the Bank has over several years taken several steps to recover the outstanding amounts owed by the underlying borrowers, the clients defaulted on their obligations and agreed terms on multiple occasions. The Portfolio does not include any loans where the underlying borrowers defaulted on their obligations for health-related reasons.
The Bank will keep the market informed of any developments as they arise and will consequently publish further details in due course.
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