Business news from Ukraine


20 August , 2020  

Oschadbank (Kyiv) is preparing to start selling non-performing loans (NPL) at open auctions starting in the fall of 2020, in particular, the bank is currently identifying and agreeing on the relevant assets for sale, the bank’s press service has told Interfax-Ukraine.
The press service clarified mechanisms for managing problem assets have become more accessible thanks to the decree of the National Bank of Ukraine (NBU) dated April 13, 2020 (No. 49) and the resolution of the Cabinet of Ministers dated April 15, 2020 (No. 281).
It is clarified that these documents determine that the relevant auctions should be held according to the Dutch model (to lower the price) and include the stages of submitting closed price offers and a price offer subject to a number of conditions.
The press service added that such conditions include a ban on the purchase of a lot by the debtor or a person related to him, setting the starting price at the level of the gross book value of the financial asset, and the minimum at a level not less than the minimum economic benefit.
It is noted that the changes adopted by the NBU and the Cabinet of Ministers also determine the procedure for writing off bad assets by state banks. In particular, in accordance with them, Oschadbank in the first half of 2020 wrote off non-performing assets by UAH 22 billion, which led to a decrease in the share of NPL in the total credit portfolio from 55% at the beginning of the year to 48%.