Romania's Reff & Associates, a member of the Deloitte Legal network, has advised Patria Bank on the sale of a portfolio of non-performing loan receivables with a total nominal value of RON 502 million to companies in the KRUK Group.
The portfolio was segmented in two tranches with each sold following what Reff & Associates describes as "a dedicated competitive process for selecting the buyer." The first tranche, with a face value of approximately RON 245 million, consisted of unsecured consumer loans, and was sold in October 2018 (as reported by CEE Legal Matters on October 31, 2018). The second tranche, with a face value of approximately RON 257 million, was announced in January 2019, and consists of secured loans granted to companies and consumers.
Reff & Associates advised Patria Bank on both phases of the project and with respect to both portfolio tranches. With regard to the second tranche, the firm reports that it "will continue to assist Patria Bank up to the completion of post-transfer formalities." The project was headed by Reff & Associates Managing Partner Andrei Burz-Pinzaru and coordinated by Managing Associate Andreea Serban, with the assistance of Senior Associate Lorena Rosia and Associate Danut Arion.
"Completing these transactions in a difficult time for the secondary market of NPLs in Romania indicates that selling these portfolios remains one of the key tools for banks to efficiently manage these cases," commented Burz-Pinzaru. "It remains to be seen if we will continue to see legislative evolutions which limit this type of disposals on the local market or if the Romanian lawmaker will understand to harmonize the legislation with the other EU states and with the Central European Bank’s recommendations, which stimulate this market in order to provide a stable and sustainable lending environment.”
Editor's Note: After this article was published the KRUK Group informed CEE Legal Matters that it had relied solely on its in-house team to complete the team, led by "KRUK Romania long-term collaborator, lawyer Claudiu Gantoi."