VBAG: Romanian Affiliate Sells Bad Loan Portfolio

Professional ServicesReal Estate ♦ Published: March 18, 2014; 11:41 ♦ (Vindobona)

The ailing affiliate of Austrian partly nationalized VBAG will sell its non-performing loans on a large scale.

The Romanian affiliate of VBAG will get rid of bad loans in the real estate sector. / Picture: © Österreichische Volksbanken-AG (ÖVAG)

The financial institute will sell loans with a nominal value of € 490m. According to Benoit Catel, president of VBAG Romania, the bank will separate from a major share of bad loans in the real estate sector which has heavily burdened the bank. Since the economy has not developed as favorably as assumed many companies and private clients were not able to pay back debts.