IFC has also become minority equity shareholder in Collectius to help the company build additional servicing capacity and further strengthen its position as a trusted partner to manage unsecured NPLs for leading banks and financial institutions in the region.
“Given the COVID-19 crisis, high levels of non-performing loans can become a major problem in emerging economies, stalling credit flow and impeding growth. So, resolving NPLs is even more critical to maintain efficiency in intermediation for the financial sector,” said
This investment is part of IFC's strategy to build dynamic secondary debt resolution markets. The IFC and Collectius NPL platform is expected to serve as a model for other investors via demonstration and replication channels, thereby increasing market competitiveness and integration.
IFC's DARP program was launched in 2009 to address the significant increase in NPLs after the 2008/2009 global financial crisis. Since its inception, DARP has grown to a total commitment of