23/05/2014 – Expansion
Banco Popular is going to play a double game disposing of the business of Citi in Spain to obtain high gains. The entity presided by Angel Ron decided to join its own credit cards and consumer loans with those of Citi and sell half of them to a foreign fund.
Moreover, Popular seeks alliances with foreign funds, such as Kennedy Wilson and Värde Partners to whom it sold its real estate servicer Aliseda for €810 million last year.
It is expected that the €3.5 million credit card volume of Popular will inflate by 30% (€1.1 million) when the Citi part is added. When it comes to consumer loans, Popular has got a €3 billion risk, whereas Citi left the business by selling its €265 million in performing and €280 million in non-performing loans – to Apollo.
What is more, Apollo hired over 300 experts specialized in debt recollection in Spain and completed its project with the purchase of Finanmadrid from Bankia in 2013.
Original article: Expansión (by Jorge Zuloaga)
Translation: AURA REE