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.
ADVERTISEMENT
Hungary Trade Surplus at EUR 308 mln in April
Parl't Approves Amendments to Legislation on Judiciary
Gloster Acquires P92 IT Solutions
Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
