Low-yield environment boosts demand for NPLs
The low-yield environment in Hungary is lifting factoring companiesʼ demand for non-performing loans (NPLs), pro-government daily newspaper Magyar Idők reported yesterday, according to state news wire MTI.
Under normal circumstances, factors pay lenders about 20% of the value of NPLs, but offers are now being made for 30-40%, and even up to 50%, of portfolio value, Magyar Idők reported.
Offers of NPL portfolios are also drawing more interest, with as many as 8-10 factors bidding for some, the report added.
The newspaper reported that one company, Intrum Justitia, recently bought Erste Bank Hungaryʼs portfolio of 5-6,000 non-performing mortgage loans for EUR 62 million.
UniCredit Bank parted with some HUF 55 bln of its NPLs in two parts, selling HUF 42 bln to APS Holding and HUF 13.6 bln to EOS Faktor, the paper added. In addition, APS also bought Raiffeisen Bankʼs retail NPLs for a little more than HUF 25 bln.
MKB Bank is currently also offering its NPLs, Magyar Idők reported.
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