Bank BPH PBK sells receivable debts worth zł 89 million

According to debt collecting companies, the bank looks to collect between 10% and 50% of the amount owed, said Mariusz Zygierewicz, from the Polish Banks' Association (ZBP) there are reasons these types of transactions are rarely on the market. The major reason is that selling debt means revealing debtors information, another obstacle is the fiscal as the bank creating reserves for bad debts accounts for the cost of producing revenues and will in turn pay smaller tax. However, selling debts means cancelling whole reserves and paying 27% tax. BPH PBK should receive more than this amount according to Jerzy Korcz, Jatex president, a reasonable number would lie between 28% and 35%. (Parkiet, August 2-4, p. 3) M.M