Casa de Insolventa Transilvania, one of the biggest insolvency management firms in Romania, will open its first office outside the country in Cyprus, an emerging market where the insolvency practitioner profession only started to be officially recognized 2 years ago.
”The European insolvency market needs a complex multidisciplinary approach and the integrated product that the CITR offers. The decision to open a CITR office in Cyprus is a natural step in the company’s evolution, given the strong leadership position on the national market and the first step towards what CITR will mean over the next ten years. We are ready to expand to new European countries in need of our expertise and we are already analyzing two new markets to explore,” says Vasile Godinca-Herlea, CITR CEO.
The share of non-performing loans (NPL) in the total loans in Cyprus is steadily rising, reaching 43.7 percent in 2017, according to the Central Bank of Cyprus. By comparison, Romania’s NPL rate reached 6.4 percent and continues to decline, according to data provided in the annual report issued by the National Bank of Romania for 2017.
CITR aims to replicate its Romanian business model in Cyprus and to transfer experience in an insolvency start-up market.
”We firmly believe that through this integrated approach as well as by streamlining the insolvency procedure, we can help re-market the companies in need on the local market in Cyprus as well as improve local legislation, as we did in Romania,” the CITR CEO added.
In June 2018, the insolvency market in Cyprus had only 280 registered insolvency practitioners, while in Romania there were 2,959 UNPIR-accredited insolvency practitioners. The Cyprus CITR office will be set up by a joint team of Romanian and Cypriot specialists, with the support of the 150 specialists from the multidisciplinary teams in Romania.
After Cyprus, CITR plans to open two more offices in Europe in the next two years.