Banks, EU – Baltic States, Financial Services, Latvia, Legislation, Loan

The loan portfolio includes most consumer loans issued by Krajbanka, as well as credit card and overdraft balances. Net balance value of Krajbanka loan portfolio was LVL 8.3 million as of September 2012, KPMG Baltics public relations manager Oskars Firmanis told Nozare.lv.

The deal has been approved by the Financial and Capital Market Commission.

This is the first part of Krajbanka loan portfolio, divided into five parts in total, to be sold.

All Krajbanka customers' debt conditions remain unchanged, and the sale of the Krajbanka loan portfolio does not mean that the bank's former clients will have to go to the bank or to B2Kapital office to re-sign the loan agreements.

B2Kapital will be fully transferred the part of Krajbanka loan portfolio it has bought in two months' time.

B2Kapital was established by B2Holding for acquisition and management of loan portfolios in Europe. In September 2012, B2Holding acquired Finland's largest independent debt collection company OY OKPerinta. B2Holding also has subsidiaries in Norway and Estonia.

Krajbanka loan portfolio has been divided into five smaller loan portfolios: corporate, mortgage, profitable, unprofitable and consumer loan portfolios.

Talks on the sale of two more Krajbanka loan portfolios are underway at the moment.

At the end of April, Krajbanka's assets stood at LVL 183.585 million, of which the largest part – LVL 145.934 million – was made up of loans.

As reported, Riga Regional Court declared Krajbanka bankrupt last May. Krajbanka bankruptcy process is run by KPMG Baltics.