OTP Bank Romania starts foreclosing procedures against bad debtors

Ana Sabiescu, 18 Aug 2009

Romanian version

OTP Bank Romania, fully-owned subsidiary of OTP Group swung back on profit in first half this year, after posting 4.5 million euros growth in second quarter. However, the bank started the foreclosure proceedings against borrowers falling behind payment, Lazlo Diosi, CEO OTP Bank Romania said in an interview to Wall-Street.

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“First Home” scheme has put mortgage lending on ice

“In the second quarter this year, I’ve noticed that the mortgage industry moved on ice due to First Home scheme. The program has clearly blocked the mortgage market”, says Laszlo Diosi.

“The mortgage market is hardly moving, and we barely grant a few loans, because people don’t come searching for financing, and we can’t start ‘head-hunting’”, said Laszlo Diosi.

“The market will most likely recover in September and we will probably grant more mortgage loans than we are now”, Diosi continued.

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