IIB aims to double loan portfolio to 300 mln euros in 2014
MOSCOW. Dec 3 (Interfax) - The International Investment Bank (IIB) plans to nearly double its loan portfolio to over 300 million euros in 2014 from 180 million euros anticipated at the end of 2013, IIB chief executive Nikolai Kosov said at a briefing.
"Our new loan portfolio, which stands out with its minimal risk level, has already exceeded in size the old loan portfolio that I inherited. It could be about 180 million euros by the end of the year," Kosov said.
He said the "conservative plan" is to grow the portfolio to "more than 300 million euros by the end of 2014.
In the longer-term, the "bank's assets should exceed 1 billion euros by the end of 2017, the loan portfolio should amount to about 800 million euros," IIB deputy CEO Denis Ivanov said at the press conference.
IIB also plans this year to complete writing off bad loans the bank accumulated under the previous management team.
"We're getting rid of toxic assets that have accumulated on the bank's balance sheet for so many years," Kosov said, adding that about 90% of loans extended prior to the arrival of the new management team are "toxic."
"Russia accounts for about 75% of this toxic portfolio. Bulgaria follows," Kosov said.
He also said that despite heavy provisioning for writing off bad loans, the bank expects to close 2013 with a positive financial result. Provisions for toxic loans will total up to 90 million euros.