Banks, telecom companies sell overdue credits totaling EUR 138.5m in 2007, Coface Romania says

Coface Romania is the unit of France's second-biggest credit insurer by premiums. The sum is the result of 303,084 overdue loans, these being 2 to 3 years old, the official said.

From the banking industry (banks and financial institutions), the firms specialized in collecting debts received in 2007 some 12 offers, totaling 140,000 overdue loans. Their value stood at 121 million euros.

The rest of the overdue loans came from an insurer and had a value of 4.1 million euros. Most of the sold credits were not paid for 30 to 90 days. Some 63 percent of the loans were for personal needs and 32 percent for consumption. Almost 93 percent of the credits were in lei.

Romania’s overdue loans recovery market started taking shape in 2004, once the consumer credits industry boomed, Coface said. The market is increasing at an average annual rate of 70 percent. Some 30 players are active in this sector, at the moment.

Source: NewsIn