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 for Q3 2018 the European region average NPL ratio was 4.2% (% of total gross loans) and total volume of NPLs across the Europe is at the level of EUR 630 billion (Q3 2017: 5.2% and EUR 760 billion respectively). Secondary market for NPLs is contributing NPL reduction efforts and the total amount of NPL transactions is continuously increasing, showing significant increase within last three years from EUR 100 billion in 2015 to over EUR 200 billion for 2018, the current trend is continuing.
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 and Lithuania 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.