In Eastern Europe NPL traders face old challenges and new opportunites.
Karel Smerak, one of the two Directors of the Transaction Center NPL Secured for Eastern Europe, sees good opportunities for receivables purchases in the region. A challenge: the data quality of the portfolios
Sometimes the current owner doesn't even know what he has.
Is that the rule?
Mr Smerak: No. Spontaneous sales by less experienced players also take place. With these, not only can the data turn out to be missing or even outright wrong, but the perimeter of the portfolio – in other words what is actually being sold – can also change at the last minute. The poor data quality is frequently understandable. Secured NPL portfolios often include older assets that have ‘survived’ several restructurings, mergers and IT system migrations. They are sold because they are no longer part of the core business. These assets receive scant attention. Very often the sellers don’t want to process any further data for a sale because they don’t think it’s worth the effort. Sometimes the current owner doesn’t even know what he has. Generally, one can say: The better the data quality, the greater the seller’s chance of obtaining a good price.