Romanian banks sold EUR 380 mln bad loans to debt recovery companies in 2011

Banks active in Romania sold loans worth some EUR 378 million last year to debt recovery companies, according to Isabela Iacob, general manager of Kruk International debt collection company. The majority of banks with retail loans in their portfolio in Romania sold debt. The total value of debt bought by debt recovery companies from banks, leasing companies, telecom operators and utility providers reached some EUR 472 million. “Most banks on the market sold loans. Tow or three years ago, large and medium banks sold, but starting the end of 2010, smaller banks also started to sell, so that over 90 percent of the banks with retail loans sold portfolios,” said the Kruk Romania GM. Externalized loans made in Romania were of some EUR 95 million in 2011, and 60 percent of them were externalized by banks. Kruk currently works with nine banks and is currently in talks with seven more. editor@romania-insider.com