Debts of individuals that handle specialized companies for recovery are increasing in the first half of 2015 their number increased by about 18% annually, while the amount is over 983 million. Lev compared to 820 million. lev for the same period of 2014 processed by collectors obligations of companies did rise three times a year and at the end of the first half are over 74 million. lev

This study shows “Ipsos Bulgaria”, commissioned by the Association of collection agencies in Bulgaria (AKABG). Data submitted by the 15 companies that are members of the association and representing over 70% of the market of non-performing debts in the country.

Activation of telecom

Telecommunications operators have traditionally been among the main users of the services of the collecting companies, but in the first half of the year the sector reported a substantial boost in their efforts to collect outstanding receivables from customers.

“Accounts to the mobile operator still among the last in our priorities of payment that clearly lead to a change in the strategies of these companies to collect,” explains Alexander Grilihes, Executive Director of “International Frontex”.

For the six months from January to June, they instructed the companies debts totaling 432 million. Lev compared with 146 million. Lev a year earlier. Thus the share of their claims to the total amount of debts collected by the collecting agencies increased to 44% (18% in 2014).

Another essential part of the business of collectors continues to come from banks – submitted by them to collect receivables for the first half formed 42% of total liabilities of individuals who specialized companies processed.

Sold more portfolios

Sales of portfolios of overdue receivables of individuals have also risen, according to data from the study. In the first half total debt sold by other lenders 149 million. Lev at 34 million. Lev for the same period of 2014

“Increased supply of bad loans for sale is related to the tightening of regulations and supervision of the banking sector – in view of the forthcoming stress tests in the Bulgarian sector banks began to pay serious attention to the quality of their assets and seek to clear part of its non-performing loans “said the manager of the” Agency for recovery “(ACB) Martin Despova. In his words, however, the activity of the banks in terms of sales of packages of distressed loans in bulk remains sporadic, mainly by offering portfolios with large arrears accumulated in the period from 2008 – 2010

Popularity among Business

From AKABG account the increase in the popularity and use of their services by businesses to collect intercompany receivables. In the first half the companies in Bulgaria have instructed the companies collecting debts totaling 74 million. Lev at about 23 million. Lev for the same period last year.

“The main volume of debt associated with the consequences of the collapse of the CCB and losses, which some legal persons suffered as a result,” said the manager of “Coface Bulgaria” Milena Videnova. “Another important factor is the delay of some state payments, making it impossible procurement contracts to pay back on time with suppliers and subcontractors,” she said.

Expectations

The branch association expected by the end of the year the volume of contracts awarded to the collecting firms obligations of individuals to remain at close to current levels. The forecast for collection in intercompany obligations it has to increase, driven by an improved economy, starting payments from the state and the fading of the negative effects of the events surrounding the CCB summarizes Raina Mitkova-Todorova, who is the manager of “EOS Matrix” and Chairman of AKABG. However, it is possible deterioration in the ability of consumers to pay their bills during the autumn months because of the upcoming elections and related political unrest, she says.