Bad debt... good business

Just a few years ago the market for receivables secured by mortgages was virtually non-existent in Poland. If there were any transactions, they mostly involved testing the market or were of a very low value. As time went by, more significant transactions started to emerge, but the true breakthrough took place in 2014. In the spring of that year the Kruk group bought a portfolio of receivables secured by mortgages with a total nominal value of app. PLN 710 mln from Getin Noble Bank, paying PLN 230 mln for it. At the end of the year, Kruk also bought a portfolio of receivables secured by mortgages with a total nominal value of PLN 443 mln from BZ WBK, paying PLN 70.2 mln. “In 2014 we purchased receivables secured by mortgages with a combined nominal value of PLN 1.2 bln,” says Tomasz Kałuziak, the manager of the investor relations and development team at Kruk. Debt collection company Kredyt Inkaso is also carving out a position for itself on the market. In autumn 2014 it con