State Bank Ukreximbank has started a large-scale sale of claims on loans to problem borrowers who do not cooperate with the bank on voluntary debt settlement.
In the near future, non-performing loans of borrowers-legal entities, the total amount of which reaches tens of billions of hryvnias, will be put up for electronic auctions.
The first exhibited lot is the rights of claim under the loan agreement and receivables of the borrower with collateral in the form of unfinished construction. Construction of a multifunctional premium complex Sky Towers with an area of 223 thousand square meters. m. in the center of Kiev was stopped due to deteriorating financial condition of the investor.
Bidding with a starting price of UAH 7.145 billion will take place on November 3 at the OpenMarket auction (SETAM of the Ministry of Justice of Ukraine). In total, 7 lots worth over UAH 24 billion have been put up for auction at the moment.
The process of selling NPL claims involves several English and Dutch auctions with a gradual reduction in price. At the first auction, the rights of the claim are set at a price equal to the amount of the borrower's debt to the bank. The transition to the next auctions will take place in the presence of demand for a particular lot and provided that the application of this scenario will be the most cost-effective for the bank.
Independent experts and appraisers will be involved on a competitive basis to determine the sale price of the claims at Dutch auctions.