BRD head: We lose 5% of collateral-backed bad loans

The final loss BRD posted from bad loans backed by a real collateral (mainly mortgage-backed ones) reaches 5% of their value, states Guy Poupet, BRD chairman. In the case of unsecured loans, the bank periodically transfers to specialised debt collection companies loan packages included in the bad loan category, with the recovery rate amounting to at least 10%. In the past three years, BRD has sold such loans worth above 100m euros. At the same time, more than 400 people in the bank have assigned overdue loan monitoring and collection duties. Poupet says the core target for this year is to continue lending operations, in a manner adapted to market conditions. “Lending, product and services offer adjustment and maintained profitability will be the main directions this year”. He specified the bank needed to maintain its profitability to ensure its development and retain its clients’ confidence. Almost two months since his appointment at the helm of BRD, the French banker believes there are no reasons for sweeping reforms at the bank, but says BRD will profit from the current slow business period to boost procedure and operation efficiency.