The KRUK Group and the World Bank purchase the largest consumer debt portfolio in Romania
On May 20th 2016, the KRUK Group signed an agreement with Eurobank Group’s entities to purchase a portfolio of consumer debt with a nominal value of EUR 597m. The project is executed with IFC, a member of the World Bank Group. The portfolio is the largest in the history of the Romanian consumer debt market with around 180.000 cases. The investment share of the KRUK Group is EUR 46m and will ultimately reflect the agreed contractual adjustments. The entire portfolio will be managed by KRUK Romania SRL, a KRUK Group company.
“The agreement we have signed today takes KRUK to the next level, where we can work with the world’s largest financial institutions. It is a very special moment for me. Our entire team has worked hard to see our company become a recognised and equal partner for top international institutions, such as IFC. Looking at the potential of the Romanian market as well as of other Western and Central European countries, we see there is still a lot to be done for us. Being invited to take part in the largest bilateral transactions opens up new opportunities and options. With this transaction alone, we are set to break the record of our investment in Romania, and let us not forget that we are still active participants of standard auctions as well. So far, our largest expenditure on the market, of PLN 158m, was made in 2015. The total nominal value of our Romanian portfolio has exceeded PLN 10bn. Additionally, the portion acquired by our partner, the IFC, will strengthen our debt management business, boosting revenue from these services,” said Piotr Krupa, President of KRUK S.A.
The KRUK Group announced its participation in the project in the second half of 2015. The investment is the largest transaction ever on the unsecured consumer debt market. Currently, the KRUK Group has over 2,700 employees, including more than 500 in Romania alone. KRUK is present in seven countries of Western and Central Europe. Over the last two years, it entered the German, Italian and Spanish markets by acquiring its first debt portfolios there.