KBC Consumer Finance, the consumer lending division of
Belgian-based KBC, set up in 2007 and operational since April last
year, has posted around 13.5 million euros in losses since its
establishment, according to data published on the website of the
Finance Ministry. The company is currently not granting funding any
more, with shareholders currently in sales talks, amid a collapse
in credit demand on the Romanian market. KBC Consumer Finance
reported an over 46.1 million-RON (12.5 million-euro) loss last
year and an around 3.3 million-RON (1 million-euro) loss in 2007.
The company’s revenues amounted to 6.1 million RON (1.7 million
euros) in 2008. The Belgians’ offer consists of personal loans
credits granted in stores exclusively in RON, with either a fixed
or a floating interest. The effective annual interest rate (EIR) on
KBC Finance’s loans ranges from 29 to 35%. According to market
sources, the Belgians have been seeking to sell the consumer
finance company for a few months. At the time of their market
entry, loan demand was still quite high, but under the current
circumstances, KBC can no longer carry on with its development
plan.

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