Companies with financial difficulties receive help from the bank’s Financial Restructuring & Recovery (FR&R) department. The main developments taking place at this part of the bank are described below.
Daphne de Kluis, Managing Director: 'We see two major developments. On the one hand, fewer clients are coming to us. Although monthly inflow is still fluctuating widely, it’s lower than it was last year. That’s good news. On the other hand, the persistently weak economy has hurt the financial clout of many businesses in the past six to seven years. We've seen some of these companies return to FR&R two or three times. There comes a point when we can no longer help them recover sustainably. This is reflected in the outflow and duration figures. Around 50-60% of the businesses recover fully after being helped by FR&R. Last year this figure was 60-70% and in healthier times it was even 80% or higher. Companies are now served by us for an average of two to three years, whereas before the crisis this was eighteen months.'
The economic forecast is slowly improving. ABN AMRO expects all sectors to return to the black next year. Daphne de Kluis: 'The effect of the economic upswing will be reflected in FR&R’s figures, but only at the tail end of economic growth. We are one of the last departments to feel the effect of the recovery on our figures.'
More information on Financial Restructuring & Recovery is available in a number of articles on the website Verder met Financieren (in Dutch only).