Receivables management is a large-scale and growing industry on a domestic, regional and global level.
Non-performing exposures (NPE) make up approximately 4% of aggregate loan portfolio in Europe
Based on ECB data the European region average NPL ratio has been within 3%-4% over last years (% of total gross loans) and total volume of NPLs across the Europe has been at the level of EUR 600 billion to EUR 1,100 billion over last years. Secondary market for NPLs is contributing NPL reduction efforts and the total amount of NPL transactions is continuously increasing.
Market growth is triggered by corporations’ policy to focus on core and outsource non-core activities, tightening financial sector regulations, investors’ appetite for returns the industry offers, developments in financial services industry and overall macroeconomic trends.
PlusPlus considers Estonia, Latvia, Lithuania and since 2019 also Finland as its home market. Each of the Baltic States is equally important for the company.
Individual exposures are typically sold as portfolios worth tens of thousands to several million euros.
Most important suppliers of portfolios to the market are financial institutions followed by telecoms and other types of sellers.
Baltic market is characterized by healthy competition between a number of players regularly exclusively invited to bid for non-performing debt portfolios.