"UniCredit Bank" to get rid of bad debts

For the first time in 7 years, the bank decided to write off bad debts. Before the end of this year, "UniCredit Bank" get rid of the 250 retail loans worth 55 million rubles, while the average cost of each loan will be 200 thousand rubles., Informs RBC daily. What then is the total amount of write-offs, it is not clear. According to the source head of retail credit risk, "UniCredit Bank" Victoria Polyakova, the procedure will continue in the first and second quarter of 2011 It was then that the maximum volume will be written off. According to her, over the seven years of retail lending from the bank was not unprecedented write-offs, resulting in accumulated arrears, which by comparison with other banks, have long engaged in the sale and write-offs of bad debts, looked very unrepresentative. Polyakov also said that last year the bank had already discussed the possibility of selling bad debt, but the price for bad loans during the crisis was very low, so just sell them was not interested. As the bankers, bad debt write-off - a fairly common practice, because it frees up reserves for the bank.