Garanti BBVA announced the sale of a non-performing loan portfolio totaling TL 2.64 billion to various asset management companies operating in Turkey. The transaction transfers credit portfolios comprising individual, credit card, and commercial debt accounts that had previously been classified as non-performing by the bank.
Financial institutions routinely offload distressed debt portfolios to third-party asset management firms to clean up balance sheets, reduce provisioning burdens, and free up capital for core lending operations. Further financial terms of the transaction were not disclosed in the initial announcement.
