The outstanding claims amount increased by 40% in the 1st quarter of 2019

The amount of debt in the first quarter of 2019 amounted to approx. 105 million MDL, an increase of up to 40% compared to the same quarter of 2018, based on the analysis of the portfolio managed by INCASSO - the leader in debt collection and recovery services in the Republic of Moldova.

The microfinance organizations, followed by the banking sector, telecommunications and utilities companies are among the top INCASO clients with the largest number of overdue debtors.

According to company data, between January – March 2019, of the total sum of debts that entered into its portfolio, circa 75% are consumer loan debt given by microfinance organizations and commercial banks. The claims portfolio at this category is around 85 million MDL, figures are valid for the first three months of the current year. Other 15% represent the debt accrued by Moldovans on payment of utilities, while 10% are debt on receipts, as well as overdue bills for telecommunication service providers.

The data analysis carried out by INCASO specialists for the first quarter of 2019 also shows that the largest number of natural and legal persons with debt reside in the central part of the country - 47%, followed by the north - 33%, and approx. of 20% debtors are from the southern part of the country. Based on the comparative analysis, a slight increase in the number of bad payers from the north region of the country compared to the same period of the 2018 is recorded.

The country’s capital maintains its leading position as the city with the highest rate of debt, that is caused by the highest number of loan recipients, due to high population density compared to other cities of the country. Thus, 34% of the total number of debtors reside in Chisinau. The data gathered by INCASO also show that the largest number of Moldovans with debt are between 25 and 45 years old; also, the number of bad payers among men is overall higher by 15% than the number of bad payers among women.

„With the development of the microfinance sector and diversification of banking services provided to the public, the debt collection sector in the Republic of Moldova has also registered a significant increase since 2017. In 2018, the number of debtors has gone up by 38% compared to 2017, and in the first quarter of 2019, we are recording an increase of circa 40% compared to the same period of the previous year”, Veaceslav Mîrza, General director of INCASO, declared.

We note that the value of the portfolio managed by INCASO between January – March 2018 amounted to approx. 62 million MDL, compared to 105 million MDL registered in the same period of the current year. The total sum of outstanding debt managed by INCASO at the end of March 2019 was equal to 630 million MDL.

The company INCASO is the leading player on the debt collection market at the Mass Market category and marks 10 years of activity in the Republic of Moldova. INCASO mainly provides debt collection services to commercial banks, telecommunication’s service providers, microfinance companies, waste collection companies, as well as to individuals.