Ifis CEO says cost of funding bad loan deals rising sharply
23/09/2022 10:58
CERNOBBIO, Italy, Sept 23 (Reuters) - The cost of
financing investments in bad loans is rising significantly
raising the issue of adequate returns for players in the sector,
Banca Ifis IF.MI Chief Executive Frederik Geertman said on
Friday.
Speaking at the annual conference organised by bad loan
specialist Ifis, Geertman said it was important for the sector
to find a new equilibrium in terms of costs and returns as
interest rates rise.
"I think in the end it will be all a matter of internal
rates of return," he said referring to the returns that
investors in bad debts target when they buy a loan portfolio.
"The cost of financing these transactions is rising
significantly," he added.
In its report on the non-performing loan sector, Ifis upped
by 10 billion euros its forecast on new inflows of soured debts
now projected at 82 billion euros ($79.85 billion) over the
2022-2024 period with a peak next year, six to nine months later
than previously anticipated.
($1 = 1.0269 euros)
(Reporting by Valentina Za
Editing by Keith Weir)
((valentina.za@thomsonreuters.com; +39 02 6612 9526;))