Consolidating collection business in general fight with the financial crisis.
Under progressive financial crisis, the level of troubled credits with the Ukrainian banks for individual persons has achieved 15%-17% (from 33 to 38 billion hryvnyas) and this index can grow till the end of the year to the rate of 18%-20% (from 40 to 44 billion hryvnyas). 30% rate of nonrepaid credit funds is critical for banking system of the country. Such situation had brought to acute necessity of systematic approach to solving problems of banking sector of Ukraine. The practice of civilized banking shows that the collection market is one of the integral elements in the financial system of any European country.
The main players of the Ukrainian collection market today have come to the necessity to join efforts in the fight with the financial crisis, having created the association of professional collection companies – the Associated Collecting Businesses of Ukraine (ACBU). The following players of the market are the cofounders of the ACBU: Ukrborh Company, Obligations’ Execution Service, Verdict Collection Company, which is a part of eCall group of companies, CCG Credit Collection Group, European Agency for Debt Recovery. The major goal of the ACBU is systematic approach to work with financial and credit institutions.
Regardless of the critical situation in banking sector, financial and credit institutions pass only 7% of troubled debts to the collection companies. According to ACBU, the market of collection services today constitutes nearly 2,5 billion hryvnyas. (1 billion 875 million hryvnyas are with ACBU). That’s why, the participants of the Association initiate implementation of conceptually new scheme of relations with the financial structures. Also, the players of the collection market understand the negative influence of the financial crisis to the processes of overdue debt collection. Thus, there have happened significant structural changes in troubled portfolios of commercial banks during the recent 3-4 month. If only 5% of debtors became the victims of the financial crisis in August of the current year and were not able to repay credit debts in time for objective reasons, this index today has achieved 30%.
That’s why, the founders of the ACBU are ready to suggest new approaches in interaction processes in the chain “creditor”– “collector”– “debtor” to the financial institutions.