Organisation will work with US firm on distressed debt project.
The World Bank’s International Finance Corporation will invest up to €100mn in nonperforming loans in Central and Eastern Europe.
The organisation is working with Värde Partners, a US-based firm specialising in distressed debt and assets, on a co-investment project that could eventually invest up to €450mn.
The IFC hopes the project will contribute to developing a transparent market for distressed assets.
Lars Thunell, the IFC’s executive vice president and CEO, said: “Eastern Europe is one of the regions most severely affected by the financial crisis, leading to a dramatic increase in bad bank loans. By investing in these bad loans, we can help banks redeploy their assets back into the economy, giving a boost to economic recovery and job creation.”
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