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Collectius acquires first time over $800 million in bad debt in Vietnam

SINGAPORE, June 29, 2022 /PRNewswire/ — Collectius, a leading restructuring partner for financial institutions in Asiaacquired its first portfolios in Vietnam more than secured since entering the market at the end of last year $800 million of non-performing loans (NPLs) from a Vietnam-based commercial bank.

The transaction, which involves a combination of credit cards and personal loans, represents Collectius’ largest single acquisition to date and demonstrates a growing need for debt restructuring solutions in the country as loan defaults become more common due to the impact of the pandemic.

The bad loans were a joint acquisition by Collectius and IFC, a member of the World Bank Group. Both parties entered into a partnership in 2020 to a 60 million dollars Distressed Asset Recovery Platform Program (DARP)[1] which focuses on the acquisition and liquidation of distressed assets in emerging markets. Through this program, it has helped many customers in the region meet their financial obligations and regain their creditworthiness. IFC is also a minority shareholder of Collectius.

Additionally, Collectius recently acquired NPL portfolios from a leading super app in South East Asiaas part of a regional deal covering five countries inclusive Vietnam. Through these NPL acquisitions, Collectius now serves more than 195,000 customers in Vietnam and is in discussions with several financial institutions to acquire additional portfolios.

banks one Vietnam This year is expected to see rapid loan growth as the economy reopens after two years of COVID restrictions, and the ratio of non-performing loans in the country is likely to rise as regulatory leniency on loan restructuring expires. The State Bank of Loan Moratorium Vietnamwhich allows banks to extend their repayment terms to customers ends on June 30, 2022.

Vietnam is one of the fastest growing economies in the world and the banking system, together with the central bank, is accelerating the process of bad debt handling and restructuring. As a leading fintech pioneer in purchasing unsecured debt, we look forward to working with partners in the country to contribute to a well-functioning NPL market, which is key to a healthy banking sector,” he said Gustav A ErikssonGroup CEO at Collectius.

Collectius is engaged by major banks and financial institutions and continues to expand its position as the preferred buyer of consumer NPLs South East Asia, Use of technology and digital strategies to build additional maintenance capacity. It applies what it calls the “Collectius Way of Collections” – one based on ethics, compliance with local and international regulations and a personalized and tailored approach. Collectius also ensures that all clients who undergo its processes benefit from greater financial literacy, gaining knowledge of interest accumulation and the various fees that banks and creditors add to an NPL, guiding them along the way to freedom from debt

About Collectius
Collectius is a leading restructuring partner for financial institutions in Asia. With surgeries in it Singapore, Indonesia, Philippines, Malaysia, Thailand, India and Vietnam, it has a growing presence of over five million customers in these markets. Collectius aims to transform the debt management industry Asia. Its processes are specifically designed to provide an end-to-end digital user experience that is secure, simple and frictionless. It is digitally driven to enable an efficient and professional mediation process that sets the benchmark for the entire industry. Collectius is majority owned by its two founders Gustav A Eriksson and Ivar Björklund, the rest is owned by International Finance Corporation (IFC), Stena AB and Formica Capital.

[1] IFC press roomIFC and Collectius launch the first distressed asset recovery platform to address the impact of COVID-19 on the banking sector and consumer finance in Germany East Asia Pacific. September 16, 2020.

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Richard Dement

The author Richard Dement