Non-performing loans (NPLs)
Banks are confronted by a huge quantity of non-performing loans (NPLs) on their balance sheets. Research has shown that the NPLs of European banks at the end of 2013 amounted to more than 1.25 billion Euro. The size of Dutch NPLs is estimated at an amount of 57 billion Euro. In practice, it is not the core business of banks to manage these ailing credits. The focus appears to be primarily on the presence, valuation and foreclosure of the existing collaterals, as a result of which less attention is being paid to explaining the discrepancies between the funds provided and the actual value of the collaterals.
HIG has a great deal of experience in providing insight into the nature and scale of the problems associated with NPLs. Research has shown that some of the problems associated with NPLs have not been caused by the financial crisis, but are the result of the choices made by borrowers. In recent years, we have investigated dozens of projects around the world for banks and initiated legal proceedings. We have ensured that insight is provided into missing assets, and that they are recovered.
We have described our vision on the approach towards NPLs in a White Paper. We would like to discuss with you the possibilities regarding gaining insight into NPLs and recovering a major part of the funds you have issued.