Italians purchase pledge credit business from Banco Invest for €11.5 million

Kruso Kapital has purchased pledge credit activities from Banco Invest in Portugal, which operated the business under the Popular Economic Credit brand, in an investment that amounts to €11.55 million, according to the Italian institution in an announcement this Monday.

For the company listed on the Italian stock exchange and part of the Banca Sistema group, the transaction “continues the company’s expansion plan in high potential international markets”, through the creation of a new local entity, Pignus – Popular Economic Credit.

“With a business model based on easily accessible loans, insurance for customers and low-risk assets, Kruso Kapital seeks to revitalize one of the oldest financial instruments in the world,” the Italians said in a statement sent to newsrooms.

Pignus – Popular Economic Credit has a team of 44 workers and a network of branches throughout the country, including four in Lisbon and two in Porto, managing a portfolio of pledge credits to the amount of approximately €16 million, almost totally guaranteed by gold, which corresponds to about 15,000 active contracts and a customer base of more than 32,000 people.

A pledge is a legal technique used to secure a debt for a creditor in the event of non-payment. This solution is achieved by making intangible personal property available as collateral, for example: shares in share capital, a patent, a property right or a receivable.