The National Bank shifts to e-auctions to dispose of the property acquired as collateral against refinancing loans. The Regulation to this effect has been approved by NBU Board Resolution.

“The National Bank provides refinancing to banks against the collateral of movable and real estate. If a bank fails to meet its obligations under the loan agreement,  including on the grounds of being declared insolvent, the National Bank shall have the right to pursue foreclosure of the property acquired as collateral to settle the outstanding debt on the loan, and subsequently dispose of this property, explained Director of the Risk Management Department Ihor Budnyk.

According to him, in most cases, the property pledged as collareral is sold either by the Deposit Guarantee Fund (if a bank was a pledger) or by the State Enforcement Service of Ukraine (if the property was  pledged as collateral by third parties) If, for some reasons, the property has not been sold by the Deposit Guarantee Fund or by the State Enforcement Service of Ukraine, it shall be recorded on the balance sheet of the National Bank.

What is new in this Regulation is the launch of e-auctions.

“E-auctions will enable it to simplify the disposition of the property, boost competition among the bidding process organizers and buyers, and maximize the disposal price of the property.  This is the next step to enhance the transparency of the National Bank, - said Ihor Budnyk. – In addition, we intend to publish all the items of movable and immovable property acquired as collateral against refinancing loans

E-auctions are a priority way to dispose of the property, reads a notice.  A bidding process organizer shall be selected by the National Bank selected through a public competition in compliance with the Law of Ukraine on Public Procurements.