National Bank of Greece to sell 1.2 bln euros of bad loans

National Bank of Greece has agreed to sell 1.2 billion euros ($1.33 billion) of unsecured non-performing loans to asset manager CarVal Investors as part of efforts to clean up its balance sheet.

ATHENS, Aug 1 (Reuters) - National Bank of Greece NBGr.AT has agreed to sell 1.2 billion euros ($1.33 billion) of unsecured non-performing loans to asset manager CarVal Investors as part of efforts to clean up its balance sheet.

"The price of the transaction was above 9 percent of the unpaid principal," National Bank said on Thursday.

The management of Greece's second largest bank wants to reduce its non-performing loan portfolio to around 5% of total loans by 2022, from 41% at the end of 2018.

Bad loans are the biggest challenge facing Greek banks, the legacy of the debt crisis that hit the country's economy.

($1 = 0.9042 euros)

(Reporting by Lefteris Papadimas. Editing by Jane Merriman)

((lefteris.papadimas@thomsonreuters.com; +30 210 3376477; Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))

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