In the previous year, the National Bank of Ukraine (NBU) recovered UAH 2.6 billion of refinancing loans issued to insolvent banks, which is half a billion more than in 2017.
The largest share was due to the sale of property rights, which amounted to UAH 1,237.7 million. Another UAH 681.6 million were recovered from selling real estate. Other sources of debt repayments under the refinancing loans of insolvent banks were as follows:
- UAH 434.8 million of redemptions on domestic government bonds
- UAH 132.3 million of acquisition of real estate of property surety providers
- UAH 154.4 million of repayments on loan agreements pledged to the NBU.
In 2018, the highest price (UAH 308 million) was on the property rights pledged to the NBU by Delta Bank PJSC.
The volume of approved initial prices on property rights under the pledged loan agreements more than doubled in 2018 (amounting to UAH 100.5 billion) against 2017 (UAH 45 billion). This is due to the introduction of portfolio confirmation of asset sales, as well as the simplified procedure for determining an initial price that would correspond to the value of total debt under the loan agreements.
In 2017, the NBU recovered UAH 2.1 billion of refinancing loans issued to insolvent banks.
For reference:
The decisions on selling the pledged assets of insolvent banks are taken by the DGF Executive Directorate. After receiving the official decision of the DGF Executive Directorate, the NBU, as the pledgee, approves the conditions to sell the assets that it holds as a pledge. The asset sale is also carried out by the DGF.