KBC invests 10m euros to enter consumer credits market

Belgian group KBC invested 10 million euros to launch activities on the local consumer credit market through KBC Consumer Finance, a company created at the end of last year, a report published by the group reveals. The local consumer loan market is dominated by Cetelem, the specialised division of the French group BNP Paribas, which ended last year with a volume of granted credits worth 816 million RON (around 226 million euros), up 77% compared with the end of 2006. The second position on the market is held by another French group, Soci?t? G?n?rale, whose specialised division on the local market, BRD Finance, reached a volume of credits worth 608 million RON (168.4 million euros), up 40% on December 2006. Belgium-based KBC entered the Romanian market at the beginning of last year, through the takeover of Romstal Leasing, and insurance broker Ink Broker. The value of the transaction stood at 70 million euros. According to the report, the total investment in Romstal Leasing amounted to 100 million euros, which means that, in addition to the money paid for the acquisition, KBC invested another 30 million euros in developing the leasing company.