Luanda - Recredit – Assets Management SA recovered 21.8 billion Kwanzas, out of a total of 1.2 billion Kwanzas, from the two bad credit portfolios it received from BPC, with 71% of the amount coming from the execution of real estate guarantees.
The data were released by Recredit CEO, Valter Barros, who said that the recovered amount exceeded the value planed for 2021, of 19.8 billion Kz.
“But of the total non-performing loans recovered by Recredit, 71.5% were paid with real estate assets”, the manager said during an interview granted to the newspaper Expansão
According to the publication, the IMF warns of the need to monetize these assets.
Valter Barros revealed to Expansão that the properties are already being registered in the name of the State for sale.
"Our mission is to deliver money to the Treasury and not real estate", added Valter Barros, having confirmed that in cash only 6.2 billion Kz were recovered.
Recredit achieved its recovery goals for the first time in the third quarter of 2021 and expects to continue to do so in the future.
However, [IMF] staff noted that a large part of the recoveries consisted of activating real estate guarantees, and the authorities need to increase efforts to monetize them", reveals the multilateral institution in the report.
From what Expansão found out, Recredit is transferring these properties to the State's ownership and after which they will be placed on the market in order to transform these properties into capital.
"We are aware that our role is to deliver money to the Treasury and we are already at the stage of registering these properties in the name of the State to then place them on the market and thus monetize these assets", explains the CEO.
The official added that the properties are valued at fair market value, the result of the work of an expert property appraiser registered with the Capital Markets Commission.
Recredit acquired two loan portfolios from the largest public bank (BPC), totaling 1.2 billion in bad debts.
Recredit's CEO believes that the amount paid for the second loan portfolio will be reached shortly, as the value of collateral in court is vastly higher than the amount actually paid.
Recredit is responsible for recovering BPC's toxic assets, whose bad debt value until 2020 worth 26%. So far, it has only recovered 1.8% of the portfolio.
According to him, there are currently 11 cases in court, totaling 167.4 billion Kz.
In the area of litigation, which could be sent to court if no agreement is reached, there are 276.8 billion Kz in credits, values well above the target set by Recredit for recovery, this year, of 26.33 billion Kz.
Created on August 4, 2016, Recredit is a company governed by private, anonymous and public capital, in which its largest shareholder is the Angolan State, with a 95% stake in the share capital.
The entity's fundamental mission is to acquire, recover, restructure and revitalize assets, namely credit, in order to add value to the national financial system.
