Co-funded by IFC and EOS Group (EOS), the new facility focuses on the acquisition and resolution of non-performing loans of retail clients, small and medium enterprises, and real estate-owned assets (REOs) held by financial institutions in Poland.
The new facility incorporates environmental and social standards into its NPL resolution practices, in line with IFC's Performance Standards. These include objectives such as preventing environmental damage when working with real estate, ensuring borrowers are treated fairly and responsibly.
The new facility is part of IFC's Distressed Asset Recovery Program (DARP), which focuses on the acquisition and resolution of distressed assets across emerging markets. The $9.1 billion global investment program includes commitments of $3.2 billion on IFC's account and $5.9 billion mobilized from private sector investors.
The project will be the third engagement of IFC and EOS, following the creation of a facility in 2010 to purchase and resolve unsecured retail NPL portfolios, and a €129 million regional facility to help financial institutions resolve their NPLs in Bosnia and Herzegovina, Croatia, Romania, and Serbia in 2022.
EOS has been active in the NPL market in Poland for over 25 years.