Cassa Centrale Banca Gruppo Bancario has agreed to sell €345 million in bad loans to U.K.-based credit management services provider Arrow Global Group PLC as part of efforts to bring down its nonperforming loan ratio to below 7% by 2021, Reuters reported.

The Italian cooperative banking group, which comprises 80 cooperative banks that were forced to merge following a government reform of the sector, said the portfolio comprised secured and unsecured corporate loans, according to the Oct. 14 report.

Cassa Centrale Banca is set to take over Banca Carige SpA as part of a rescue of the latter funded by Italy's banking industry, the news agency noted.