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OTP Bank Russian unit selling bad loans worth RUB 4.6 mln

OTP Bank's Russian unit is selling bad loans worth a nominal RUB 4.6 million (HUF 31.1 billion) and is likely to get less than two kopecks for each ruble of debt, a debt expert and a source familiar with the situation told Reuters.

The Russian unit of Hungary-based OTP confirmed some loans would be sold but declined comment on the volume being sold or the likely discount, Reuters reported. The bank said the consumer loans were on average 900 days overdue and had been written off in 2008, so they no longer affect the balance sheet.

The source told Reuters: “The chance those loans will be paid off is very low.”

Sergey Shpeter from debt collection agency Pristav said “I think that a collector could return as much as 1% to 2% of the portfolio. Than means the price for bank would be lower.” (MTI – Econews)