The National Bank of Ukraine has published a list of collateral (that includes property and property rights for loans to legal entities) pledged by insolvent banks against refinancing loans.
“This is another step forward toward ensuring the transparency of the NBU’s activities. Additionally, the publication of the list of collateral will help better inform potential buyers of the property and speed up the sale process. We also plan to publish detailed information on the largest collateral objects and inform the public about sale auctions,” said Director of the NBU Risk Management Department, Mr Ihor Budnyk.
As of 1 March 2016, the outstanding principal debt owed by insolvent banks on loans amounted to UAH 48.75 billion. “In 2016, the NBU expects to recover debt through the sale of collateral. It is expected to receive UAH 12.8 billion in proceeds from the sale of collateral pledged against refinancing loans.
We have great expectations regarding the Consolidated Office established at the Deposit Guarantee Fund, which will soon become fully operational. Its responsibilities will the management and sale of assets of insolvent banks. This Office is to become fully operational on 1 April 2016,” said Mr Budnyk.
In 2015, UAH 1.1 billion in outstanding debt was repaid by insolvent banks. The expected increase in proceeds can be attributed to the duration of stages in the process related to the handling of problematic assets. The collateral pledged by some banks that were put into resolution in 2014-2015 may be sold only in 2016.