Over the course of 2015, non-performing loan (NPLs) portfolios worth in excess of EUR 5 billion were put up for sale on the Romanian market, according to KPMG’s new European Debt Sales Report.
However, specialists believe that the institutional investors are making a comeback to Romania.
„Over the year, a number of major deals failed, which triggered scepticism among large investors in relation to such assets in Romania. Eventually, the year-end showed a market surge, with noteworthy deals on their way to being signed with KPMG’s assistance as an advisor: BCR sold EUR 1.2 billion in bad loans held by corporate clients and SMEs to a consortium formed of Deutsche Bank, APS and IFC while UniCredit sold a EUR 400 million portfolio to Kredyt Inkaso. Other deals are on the way to being finalised and signed in the first quarter of 2016,” Razvan Nan, Associate Director, Deal Advisory, KPMG Romania.
In Romania, a major deal took place in 2013 when the Royal Bank of Scotland (RBS) sold a secured non-performing loan portfolio of approximately EUR 100 million, but after that the market slowed down.
“In 2015, however, we saw a noteworthy rise in deals, with portfolio transactions worth in excess of EUR 1.6 billion signed close to year-end,” Speranta Munteanu, Partner, Deal Advisory, KPMG Romania, stated.
Sales of loan portfolios by deleveraging banks in Europe reached a record EUR104 billion last year, according to the new KPMG research. The report notes that the pace of this activity is likely to persist into 2017 as so-called ‘bad banks’ continue to wind down their loan portfolios.