© Reuters. FILE PHOTO: The headquarters of UniCredit financial institution is seen in downtown Milan, Italy, February 8, 2016. REUTERS/Stefano Rellandini
MILAN (Reuters) – Italy’s greatest dangerous mortgage agency doValue is discussing a potential extension of its contract with UniCredit however within the meantime has made prudent estimates on future downside money owed the Italian financial institution will ship its means, its CEO stated.
Verona-based doValue, 28.3% owned by Japan’s SoftBank Group, was arrange in 2015 when UniCredit spun off its debt servicing arm in a take care of Fortress Funding Group, the U.S. fund that was later purchased by SoftBank.
UniCredit and doValue signed on the time a debt administration settlement which has supplied doValue with a gradual income circulation.
The corporate later labored to increase its enterprise, shifting into the Spanish and Greek non-performing mortgage (NPL) markets.
Milan-based dealer Equita this month flagged potential dangers for doValue after Reuters reported that UniCredit was in talks with rival dangerous debt agency Prelios over a 2 billion euro portfolio of “unlikely to pay” loans.
UniCredit late final yr invited affords to handle a 1 billion euro UTP portfolio with a view to evaluating how the chosen accomplice carried out versus the financial institution’s in-house collections forward of contemplating additional UTP offers, sources near the matter have instructed Reuters.
UniCredit declined to remark.
The sources stated Prelios, which has provided not simply to handle the loans however has lined up buyers to purchase twice the worth of the unique portfolio, was set to prevail over rivals together with doValue. Prelios declined to remark.
Requested in regards to the implications of UniCredit’s UTP transaction on Friday throughout a post-results analyst name, doValue CEO Andrea Mangoni downplayed the dangers for his group.
“First, our present projections when it comes to new non-performing loans inflows from UniCredit are extraordinarily conservative,” he stated.
“Second, we’re at present discussing with UniCredit the extension of our present contract when it comes to measurement.”
“So the influence of the UTP disposal course of at present underneath means is certainly negligible on our outcomes.”
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