Bad bank looks back at its most successful year yet
"2017 was an exceptional year for BAMC from all major aspects: sound, transparent and efficient operations resulted in record-breaking financial indicators," CEO Imre Balogh is quoted as saying in the annual report, released by the government.
BAMC generated EUR 434.7m in cash inflows through sale of assets and debt repayments, more than double the statutory target of 10%, liquidating 21.5% of the transfer value of assets in a year.
While the loan portfolio remained the main driver of inflows, at EUR 322m, nearly EUR 100m in cash was generated in the real estate portfolio through effective repossession in collateral proceedings, management and well-timed sales.
The company noted that the large residential complexes of Celovški Dvori in Ljubljana and Nokturno in Koper had been sold almost completely, as were a number of commercial and business premises.
Surplus liquidity allowed BAMC to perform several early debt repayments ahead of schedule, while the last two outstanding bonds were repaid at the end of the year.
Part of the repayment was refinanced, but the terms on the new commercial loans are much more favourable, which enabled BAMC to further reduce its financial expenses and have more flexibility in managing debt.
The company also reports progress in the restructuring of viable debtors, including the closure of the sale of car parts maker Cimos and several substantial refinancings whereby BAMC recovered the complete gross exposure, such as in the case of tourism company Sava Turizem.
The number of finalised restructuring cases doubled so that together with the cases in the final stages of restructuring, almost 40% of relevant cases have been completed or are close to completion.
BAMC acquired additional claims towards six debtors in the value of EUR 3.8m last year (EUR 22.2m gross) and provided short-term loans to five companies in the value of EUR 4.7m.