Banks in Romania prepare to outsource EUR 1.6 bln worth of bad loans

Banks in Romania are preparing the outsourcing of non-performing loan (NPL) portfolios totaling EUR 1.6 billion, in the next two years, according to Top Factoring, one of the top local debt recovery companies. Top Factoring experts estimate that the majority of the top 12 banks in Romania will outsource more bad loan portfolios in the future, reports local Economica.net. In 2016, the total value of outsourced portfolios has reached EUR 1.1 billion, and by the end of the year another big transaction, involving a EUR 310 million portfolio, should take place, said Catalin Neagu, general director of Top Factoring. The company has managed five million debt recovery cases so far, with a total value of EUR 910 million. It has recovered a total amount of EUR 170 million. editor@romania-insider.com