NPL Portfolio Optimization

Database Completion

The database is elaborated according to criteria used by international Investors and it is aimed to provide complete and detailed information on loans:

  • Database completion done through a data extrapolation from paper files supplied by the bank;
  • Match and verify the data with the operational software used by the bank;
  • Detailed information about the Borrowers – Guarantors – Assets – Judicial Procedure Update – Other Guarantees;
  • Judiciary and extrajiudiciary activity assestment.

Portfolio Valuation and Analysis

After the completion of the database Aram Capital carries out a detailed analysis of the portfolio to asses:

  • Potential recovery rates of the loans according to the quality of the borrowers and the collaterals;
  • Valuation of secured and unsecured loans;
  • Analysis and assessment of judiciary procedure initiated by the bank;
  • Analysis and assessment of the servicing cost of the portfolio;
  • Anays and valuation of the real estate assets and guarantees;
  • Historical analysis of collection flows and cost and legal expenses of servicing.

Determination and Implementation of Recovery Strategies

Define and implement NPL portfolio recovery strategies to maximise collection flows, optimize real estate assets sale value, minimize expenses and the timing of judiciary and extra-jiudiciary procedurese:

  • Define and implemented recovery strategies allocated for each cluster according to borrower , guarantees and procedures characteristics;
  • Implementation of innovative extra-judiciary strategies on secured and unsecured loans to reduce the timing of the collections and avoid the cost of the cumbersome judiciary procedure;
  • Optimization of real estate assets value achieved through auction facilitation activity done on the local market;
  • Optimization of judiciary and bankruptcy procedures;
  • Optimization of legal, and other expenses through the rationalization of costs;
  • Cadastral and Income searches run on borrowers and guarantors;
  • Optimization of residuals of secured loans;

This activity is defined by Aram Capital and it is implemented by the Bank legal and recovery team and in same cases directly by Aram
Capital.

Sub-Portafoglio Selection

Select a Sub Portfolio to evaluate the feasability of the sale for a notional to be agreed with the Bank, the Sub Portfolio selection aims to:

  • Minimise the potential loss if any generated by the sale of the Sub Portfolio;
  • Minimise the impact on the Cover Ratio of the Bank;
  • Optimize the use of the Bank resources for the management of the residual portfolio;
  • Accommodate Investors and Bank preferences.

Investor Selection – Portfolio Sale

Once one or more investor has been selected Aram Capital will:

  • Assist and supports the Bank during the due diligence conducted by the Investor;
  • Assist the Bank in the negotiation of the sale of the Sub Portfolio;
  • Assist the Bank in the negotiation of the Transfer Agreement;
  • Assist the Bank in the post sale activities.

This material has been prepared by the ARAM Capital Ltd (“ARAM”) for information purposes only. The information contained herein is confidential and is intended for use only by the intended recipient (each a “Recipient”). The material remains the property of ARAM and must be returned on request and any copies thereof destroyed.
It should not be reproduced or disclosed to any other person, without the consent of ARAM.
By reviewing this material each Recipient represents that it is a person into whose possession the material can be lawfully delivered in accordance with the laws of the jurisdiction in which the Recipient is located.
This material should not be construed as an offer or solicitation to buy or sell of Securities or any other securities, or any interest in any securities, and nothing herein should be construed as a recommendation or advice to invest in any Securities.
ARAM acts neither as an adviser to, nor owes any fiduciary duty to any Recipient. This material does not purport to identify all of the risks associated with the Transaction(s). Neither ARAM nor any of its affiliates, agents or representatives makes any representation regarding the provision of advice to any Recipient concerning the appropriate legal treatment, regulatory treatment, accounting treatment or possible tax consequences of an investment. Each Recipient of the material should make its own independent evaluation of the Transaction(s) and the risks thereof, and of the relevance and adequacy of the information in the material and should make other investigations as it deems necessary, and consult its own legal, tax, and other advisers, in order to determine whether to participate in the Transaction(s).
The material is presented on the express understanding that although the information herein is believed to be reliable, it has not been independently verified ARAM.
ARAM makes no representation or warranty (express or implied) of any nature, nor does it accept any responsibility or liability of any kind, with respect to the accuracy or completeness of any of the information or opinions in the material. However this shall not restrict, exclude, or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not lawfully be disclaimed.
This material contains certain tables and other statistical analyses (the “Statistical Information”) which have been prepared in reliance on information provided by third parties. Numerous assumptions have been used in preparing the Statistical Information, which may or may not be reflected in the material. As such, no assurance can be given as to the Statistical Information’s accuracy, appropriateness or completeness in any particular context, or as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice.
Any views or opinions expressed herein (including statements or forecasts) constitute the judgement of ARAM as of the date indicated. Recipients of the material should not rely on any representation or undertaking inconsistent with the above paragraphs.

ARAM CAPITAL LIMITED – GDPR COMPLIANCE STATEMENT
Who we are
We are: Aram Capital Limited. Companies House No.0826 5469. Registered Office – 1 Penywern Road, London, SW5 9TT
What we do
We assist investors derive the benefits of accessing/owning Non-Performing Loans (‘NPLs’). NPLs originate with banks. We operate as advisors and gain access to/details of NPLs from banks – and investors. We facilitate investors to access these NPLs. We also evaluate/value these NPLs for both banks and investors
What information do we gain access to?
The banks or investors will pass us information relating to NPLs in order for us to perform our task. This comprises customers’ basic details (categories available on request), and sufficient only for the purposes of executing our task, with no superfluous details included
In what capacity are we handling this data?
Under the GDPR – we are a Data Processor. This reflects our advisory/non- owner status in the business model. In this scenario – the bank or the investor is the Data Controller, as they are the ones who first receive the customers’personal data in the normal course of their business. The banks or the investors pass us the customers’ details in our specific capacity as a Data Processor. We process (use) this data under the aegis of the Controller-Processor relationship – which is defined contractually between ourselves and the banks or the investors we work with
What do we need the data for?
We need the data in order to identify and keep a track of the NPLs in question, and to reference them when communicating about them with either the banks or investors
Whom do we share the data with?
We only share this data either back with the bank from whom it originated, or the investors in the equation. The investors are in turn bound by our Terms of Business to have due regard to GDPR rules, when accessing and handling this data. The only purpose of sharing the data with the investor is for identification purposes
Rights maintained by proxy
Although we are a data Processor – we will always fully comply with any requests the Data Controller may make of us, in the course of their complying with their obligations as a Data Controller. Further – we will never take an action, nor fail to take an action, which runs against the protections afforded individuals under the GDPR