micro-Finance company in may boosted sales of overdue loans to collectors, I guess the Central Bank. Transfer of bad debts allows not to spend money on the creation of reserves, moreover, with the crisis, the collectors increased their prices.
In early may, after the non-working month due pandemic coronavirus in Russia, the portfolio of outstanding clients with loans from microfinance institutions has shrunk from 5%, said the Bank of Russia. In absolute terms, the reduction is not given. At the end of 2019 the microloan portfolio amounted to 212 billion rubles., in March, it showed a slight increase, and in April did not change significantly.
a Sharp reduction in the portfolio could provide the sale of non-performing debt collectors, specifies the Central Bank. The renewal procedures of assignment could affect the share of overdue debt in the portfolios of MFIs: at the end of April the share of loans for which no interest payments are made more than 90 days (NPL90+), fell by 1.41 percentage points.
the Biggest market of the self-regulatory organization SRO “World” confirms the increase in the activity of MFIs in the market of assignment. The National Association of professional collection agencies (NAPCA) sales growth of problem debts are considered natural.
“Always after the quiet period we can expect a burst of activity. In the first week of coronaries all engaged in “hot” current issues and then returned to business as usual,” — says the actions of the MFI President of NAPCA Elman Mehdiyev.
According to the Bank, on may 21 in Russia were acting 1684 MFIs. With the beginning of the year, the market took 206 companies. 129 of them have applied for liquidation on their own, and the third did it in April.
In April, the share of problem loans in the portfolio of MFIs has exceeded 40%, evaluated credit history Bureau “Equifax”. Market participants noted a deterioration of payment discipline of borrowers, but the majority stressed that the most pessimistic forecasts have not been realized.
As the Director of SRO “Mir” Elena Stratieva, portfolios that spring passed collectors, was composed of loans issued before the crisis. In March—may, the company actively tightened the scoring, based on the General economic situation in the country, it significantly reduces the likelihood of sharp growth of delay and the sales of such debt collectors, says Stratieva.
“consequence of the crisis may be a sale of an earlier delay that we’ve seen in other shock moments. But while early to speak about it primarily in connection with significant influence on the delay of the support programs of physical persons”, — said Mehdiyev.
the Situation on the market of the assignment will determine the pricing and collectors, according to Ponomarev. “The crisis is likely to result in further reduction with��of omesti troubled portfolios. This will be the case if a collection Agency starts to fear that the solvency of borrowers will be worse,” warns the CEO Webbankir.
According to NAPCA, First collection Bureau in 2019 microfinance companies have sold to collectors bad debt by 20.4 billion rubles (calculations have RBC). The volume of transactions increased by 63.2%, while the share of such agreements on the market of the assignment is not significantly increased.
the Central Bank has noticed that in the past year, MFIs have expanded independent practice of debt collection (.pdf). More than half of the current players have tried to collect problem debts themselves in court, without the involvement of collectors.