In the second quarter, MBA Consult acquired five NPL portfolios from several major representatives of the Indonesian financial market. The total amount of debts is more than USD 250 million, and the number of cases is 580,000.
“We are very pleased with the growing number of trusted partners that wants to cooperate with us, and we are looking bright on our future in the market,” noted Viktor Vodenko, the Global CEO of MBA Consult Group.
“Today MBA Consult is truly one of the largest debt collection agencies in the country and a leader in overdue debt management.”
The Indonesian financial industry has gone through one of the toughest times since the 1998/1999 monetary crisis. In an unstable economic situation, it is especially important to control the risks and quality of loan portfolios to prevent a sharp increase in the volume of NPLs, which could threaten the liquidity of the financial sector and significantly slowdown the national economic recovery. Although BI experts note that the financial industry is fairly stable and is gradually emerging from the crisis, receiving government support. And the NPL level remains stable and predictable, but nevertheless it tends to grow – according to OJK data, the NPL level increased by about 1% for the year and reached 3.2% in March 2021. The upward trend continues: the population has not yet recovered from the current situation (reduced income and job loss), which has a strong effect on the consumption of financial products and timely payment of loans. At the same time, financial institutions continue to secure reserves for possible loan losses, for example, reserves in the banking industry reached IDR237.4 trillion as of January this year, which is 40% more than last year.
Meanwhile, the government is actively promoting the idea of increasing lending as one of the boosters of economic activity, which means a rapid economic recovery. At this situation the decision looks rather complicated. And our active position in the market and providing support to all participants of the financial market is just an opportunity for financial institutions to increase liquidity, and hence to grow the level of lending. For ordinary people who have fallen into a difficult situation this is a chance to pay off their debts on the most comfortable conditions.
“We at MBA Consult believe that the financial system should be more flexible and accessible to a major part of the population, only in this way a quick recovery of the economy and its further development is possible. We are actively investing in the acquisition of non-performing portfolios and helping ordinary people to become debt free,” said Viktor Vodenko.