doValue to manage 4.3 billion euros of Alpha Bank’s bad loans in Cyprus

MILAN (Reuters) – Italy’s biggest loan recovery specialist doValue said on Monday it had agreed with Greece’s Alpha Bank to manage a gross 4.3 billion euro ($4.7 billion) portfolio of non-performing loans and real estate assets in Cyprus.

doValue, a product from the spinning off of Italy’s UniCredit’s debt collection unit, would also manage any of Alpha Bank’s future non-performing loans and real estate assets in Cyprus, it said in a statement.

Under the agreement, doValue’s non-performing assets under management in Cyprus rise to about 11 billion euros out of a total of approximately 20 billion euro in the country, it added.

In August, Greece’s top four banks agreed to have doValue, then called doBank, manage a combined 1.8 billion euros worth of their non-performing credits.

(Reporting by Giulio Piovaccari; Editing by Edmund Blair)