Bad debts not getting out of hand

7th February 2010

© Asia Kortas Small banks loans are a bigger problem than mortgages Share:

Data from Poland's largest debt collection agency show that Poles are most often having problems paying off small bank loans and bills, rather than mortgages or other large debts.

According to a report released by Wroclaw-based Kruk, Poland's largest debt collection agency, the average bad debt sent to the company for collection was PLN 3,900, but when only the debts of individuals and not businesses were included the number dropped to PLN 2,250.

The report provided one of the first comprehensive pictures of the kinds and amounts of loans that ended up in collection. Kruk's portfolio includes some PLN 10 bln in bad debts, roughly a quarter of the national total. Most accounts are held ...