Alpha Bank AE entered into a multiyear agreement with doValue SpA under which the latter will service the Greek lender's Cyprus-based portfolio of nonperforming exposures and real estate owned assets with a gross book value of about €3.2 billion, according to an Oct. 14 release.

The Italian loan recovery company, which signed an NPL-servicing deal with four Greek lenders in August, will establish a dedicated debt servicing firm in Cyprus that will acquire Alpha Bank's existing NPE management business in the country. The transfer is subject to approval by Cyprus' competition authority, with the transaction expected to be completed within the first quarter of 2020.

The news comes as Greece's four biggest banks attempt to reduce their high stock of bad loans, which stood at more than €80 billion at March-end.