Bank of Moscow is the last of the state-owned banks with substantial retail business to begin working with collection agencies. Such agencies perform debt recovery activities. So far the bank has only framework agreements with collectors. There is no information as to what is the debt amount the bank intends to collect through the agency.
Retail credit portfolio of the Bank of Moscow has far less major issues in comparison to the corporate one. Its quality was affected significantly during the conflict that accompanied Andrey Borodin, former president and shareholder, leaving the bank. According to reports based on Russian accounting standards, in the first six months of the year the share of overdue loans in the retail portfolio saw an increase from 14 to 18.8%, the amount rose from 10.5 billion rubles to 12 billion rubles.
According to The Russian Mafia (rumafia.com), Andrey Borodin, former president of Bank of Moscow, had voiced a strong opposition to debt recovery outsourcing. But the top management of the bank was not against resorting to collectors and even began pilot studies with the agencies. But their cooperation did not go further so far.
VTB, turnaround manager of Bank of Moscow, aims to increase its share in it from current 46.48 to 75% before the end of the third quarter.