KRUK announced, through its website, the signing of a contract to purchase a debt portfolio from one of the largest French banks with a total nominal value of up to EUR 120 million (PLN 520 million).
Piotr Krupa, CEO of KRUK S.A stated “France stands out as one of the largest countries in Europe, also in terms of population size, but also in terms of volumes of non-performing loans. Its population is almost 66 million and the value of unsecured consumer non-performing loans in banks exceeds 12 billion euros”.
According to the CEO’s statements, France represents one of the most interesting European markets for KRUK, so they intend to enter the market initially by collaborating as much as possible with local servicers.
Krupa also added “As always, we think long-term and KRUK’s sustainable international growth remains a priority. We are currently focusing on a select number of markets, with a keen eye on the growing potential of Italy and Spain. At the same time, we see an opportune time to test the potential of the new market with a cautious approach, which involves limited initial capital and operational commitment from KRUK. We have conducted numerous analyzes and undertaken various other activities in relation to the French market. That said, we believe the most effective way to understand the realities of a specific market is to establish a presence through the acquisition of a debt portfolio. We view this phase as a continuation of exploratory work, refraining, for the time being, from creating an organization or planning any M&A projects. Decisions on next steps will be made once the attractiveness of the market is confirmed. During our in-depth analysis period, investments in France will be made on a modest scale compared to the overall size of the Group. We are in a comfortable position as we do not need to enter a new market to grow our business, but we are securing the opportunity to explore a country that could potentially evolve into one of KRUK’s major markets in a few years.”
Credit Village is today the meeting and reference point - through its three areas, web, publishing, events - for professionals, managers, entrepreneurs and credit management operators. It was founded in 2002 with the aim of spreading the culture of Credit and Collection Management in Italy.