Caixa Econômica Federal has opened the period for the presentation of proposals to the acquisition of two lots comprising loan-recovery properties, but that still have unsolved issues to address– the so–called BNDUs, or assets not for own use. The properties are gathered in only two lots, of about 3,000 properties each, accounting for apartments, townhouses, commercial business rooms and warehouses. The bidding process will be restricted and lots comprise both properties subject to or without legal action. Investors specializing in distressed assets had been paying close attention to this opportunity since February, when Caixa gave the first signs to the market on a possible sale. However, changes in the Bank’s board of directors and presidency have delayed this process. Proposals should be submitted by July 27th and will be opened on August 2nd.

Original Story: Estadão/Economia (Coluna do Broadcast)
Photograph: Caixa (divulgação)
Translation and Edition: Prime Yield

Recovery, Itaú Unibanco’s credit recovery company, acquired over R$ 4 billion (bn) in Non-Performing Loans (NPLs) portfolios – the so called bad debt – from Bradesco. This is the second time that the company acquires operations from the financial institution, underlining its independence, which was questioned after the company changed hands from BTG Pactual to Itaú. The operation, whose winner was selected last 9thJune, is to be completed during the current month (June), allowing Bradesco to account it in its balance sheet on the 2nd quarter. However, being overdue loans with an average two to ten-year term, this won’t ben producing effects in the Banks results.

Since Bradesco started to dispose bad debt – a strategy that was not an option for this institution previously to the country’s recent crisis and before purchasing HSBC –, the bank has already disposed about R$ 20 billion in NPLs. In the 1st half of 2018, alone, more than R$ 9 billion were transacted. As the bank seems to prefer this strategy and, unlike its competitors, still does not consider to have its own credit recovery company, the market is now expecting Bradesco to put on sale a similar NPL volume over the second half of the year, boosting the transaction of NPLs portfolios in Brazil. The bank is, however, reserving information about the volume to come into the market. Bradesco and Recovery prefer not to comment on this information.

Original Story: Estadão/Economia (Coluna do Broadcast)
Photograph: Itaú
Translation and Edition: Prime Yield

The number of Brazilian consumers listed in credit default reached 63,29 million in May, reflecting a 2.78% year-on-year increase. Data by the Serviço de Proteção ao Crédito-SPC Brasil (credit protection services) and Confederação Nacional de Dirigentes Lojistas-CNDL (a retailer association) says that the Southeast region was the one recording the sharpest increase in consumers listed as defaulters in Brazil – a status that creates restrictions for buying on credit -, reflecting a growth of 8.07% in May. In the other regions, growth has been lower, with 2.95% in Northeast, 2.27% in Center-West, 1.55% in North and 1.08% in South.

Northern region has the highest rate of defaulters – 48% of adult population living in this region, or 5,8 million defaulters. Northeast region follows, with 17,45 millions of credit defaulters or 43% of adult population; Center-West, recording a 4,94 million listed defaulters (42% of population), Southeast, having 26,94 million defaulters (41% of population) and South, 8,15 million defaulters (36%).

Of total national 63,29 million defaulters, 17,9 million are aged 30-39 years.

Original Story: Agência Brasil
Photograph: Depositphotos
Translation and Edition: Prime Yield

Itaú Unibanco and Citi have placed up for sale portfolios of non-performing loans of companies, boosting the Brazilian NPL transaction markey over the 2nd quarter. With a market traditionally concentrating in NPLs in the household segment, the disposal of corporate portfolios is seen as an evolution, thus attracting specially international specialized funds, the so–called “vulture capital”. As for Itaú, the bank has launched into the market for sale about 40 companies undergoing judicial reorganization.

The institution has already received offers from two interested parties and expects to close the operation by July. No big case of corporate reorganization is included in this lot.

Citi, which has been focusing only on the corporate segment in Brazil after selling its retail operation to Itaú, is putting into the market some R$70 million in medium-sized company’s loans. This process is now at an initial stage. Citi and Itáu have both not commented on this information.

Original Story: Estadão/Economia (Coluna do Broadcast)
Photograph: Shutterstock
Translation and Edition: Prime Yield