B2Holding invests 3 million euros in portfolios of NPL in SEE in the first quarter
SOFIA (Bulgaria), June 1 (SeeNews) – Norwegian debt solutions provider B2Holding on Tuesday announced that it has invested € 3 million ($ 3.7 million) in the purchase of new portfolios of non-performing loans (NPL ) in South East Europe (SEE) in the first quarter of this year.
Investments in the purchase of NPL portfolios in SEE accounted for around 16% of all respective B2Holding investments in the three months through March 2021, the group said in a statement.
Last year, B2Holding invested € 31 million in purchasing new portfolios from NPL to SEE, he said. The SEE market ranked third in terms of B2Holding investments in 2020 but it was also the only region in which investments increased on a year-over-year basis, by 27%.
In SEE, B2Holding is active in the markets of Bulgaria, Romania, Greece and Cyprus.
The volume of non-performing loans in Bulgaria was 5.7 billion levs ($ 3.6 billion / € 2.9 billion) at the end of March 2021, or 7.1% of all loans granted. A year earlier, non-performing loans accounted for 8% of all loans, B2Holding said, citing data from the Bulgarian central bank. The main reason for the decline in non-performing loans after the difficult year 2020, which was marked by the coronavirus crisis, is the moratorium on loans, which has benefited many of the bank’s customers, as well as the lending policies more restrictive policies applied last year, added B2Holding.
B2Holding also said it expects significant growth in the number of NPL purchases in Europe in 2021 and 2022. “With the expiration of the moratorium on loan repayments and the end of government guarantee programs in favoring businesses and households, we increase in delinquent loans. Our group expects an increase in market activity later this year and next year, “said Eric Jonsen, CEO of B2Holding, in the communicated.
The Bulgarian unit of B2Holding is Debt Collection Agency (DCA). DCA started operating in Bulgaria in 2010 and was acquired by B2Holding in 2016. It is currently active in 22 countries.
($ = 0.818269 euros)