The European Bank for Reconstruction and Development (EBRD) has announced a new initiative aimed at strengthening financial sector stability by supporting the resolution of non-performing loans (NPLs) and distressed assets across its regions. The programme involves an investment of up to €75 million in collaboration with APS Holding, a leading European asset management firm.
Through this co-investment programme, APS will acquire and manage portfolios of non-performing and sub-performing loans from financial institutions. The initiative is designed to help clean up bank balance sheets, improve liquidity, and ensure that capital locked in distressed assets can be redirected back into productive economic use.
The investment is part of the EBRD’s broader €300 million Non-Performing Loan Resolution Framework II, which focuses on developing efficient markets for distressed assets in the economies where the Bank operates. This framework continues earlier efforts aimed at reducing systemic risks caused by high levels of bad loans in banking systems.
APS Holding will initially focus on Central and Eastern Europe, where it will identify and manage selected portfolios of distressed assets in line with investment criteria. The partnership combines EBRD’s financial backing with APS’s technical expertise in loan servicing and asset recovery.
The EBRD highlighted that addressing non-performing loans is essential for maintaining financial stability and supporting economic resilience in emerging markets. By enabling banks to reduce distressed exposures, the programme aims to strengthen lending capacity, improve financial sector health, and support long-term economic growth across its countries of operation.
