Kruk pays EUR 100 mln for bad loan portfolios in Romania and Poland, sees collected debt up

The amount collected by Polish debt management and collection company Kruk Group for assigned portfolios went up by 67 percent in the first nine months of 2011 compared to the same period last year, at EUR 54.5 million (RON 229.5 million), according to the company. The nominal value of the cases accepted for collection has increased by 54 percent to EUR 1.4 billion (RON 6.3 billion). During the first nine months of the year, Kruk invested about 100 million for the purchase of non performing credits portfolios in Romania and Poland. "These results were generated by the very active approach of acquiring over 50 percent share of the debt purchasing market in Poland and Romania during the first six months of the year”, said Piotr Krupa, President of the Board of Kruk SA. The receivables management market in Romania was impacted in 2011 by the financial crisis, mainly in terms of the banking sector evolutions. In 2011, even the medium and small banks decided to externalize, not only to sell cases. “In 2011, the receivables collection market reacted in the manner we predicted: even the medium and small size banks decided to sell receivables portfolios, thus we witnessed a switch between the debt purchased and the debt servicing, in favor of the debt purchase. Accordingly, the Kruk Group investment in Romania at consolidated level, generated during the first three quarters of 2011, a turnover of RON 77 million, representing an increase of 183 percent versus the same period of 2010,” said Isabela Iacob, Managing Director and member of the Board of Kruk International. During the period July 2010 – June 2011, over 24.000 debt repayment arrangements were signed. During the communication campaign unfolded by Kruk International between September and November 2011, another 7.000 arrangements valued at RON 90 million (some EUR 20 million), were concluded. According to the statistics data of Kruk International, the average installment paid by the debtors in its portfolio is RON 313. Kruk International was established in 2007 by the Kruk Group in Poland. Irina Popescu, irina.popescu@romania-insider.com (photo source: Kruk)