Most of the loans are unsecured consumer loans. Kruk may have paid RON400 million to RON500 million for them, as the sets of non-performing consumer loans usually sell for 5% of their nominal value in Romania.
The bank loans managed account for almost 60% of the total receivables, or about 600,000, followed by receivables from the telecom sector (35%), financial institutions (5%) and insurers (2%).
Kruk doubled the number of receivables managed from about 493,000 in 2011 to some 905,000 in 2014, and the number will have likely increased to more than one million in 2015. The value doubled from about RON4 billion in 2011 to RON7.4 billion in 2014.
Kruk’s competitors on the debt collection market in Romania include APS (Czech Republic), Kredyt Inkaso (Poland) and EOS (Germany). Their portfolios reached about RON25 billion at the end of 2015, which they bought from banks at 80% to 95% discount.
(English version by Loredana Fratila-Cristescu)