The Deposit guarantee Fund of individuals (fgvfl) has facilitated the investors to purchase loan portfolios of failed banks. The Fund is allowed to acquire rights of claim for loans not only to banks or financial companies, as it was until now, but also to legal entities and individuals, writes FinClub.
“The rule that buying the rights of claim on loans can only Finance company in the first place did not suit creditors of insolvent banks. After all, existing until recently, limitations narrowed the number of potential buyers. Taking into account the wishes of depositors, the Fund has decided to amend the situation. We hope that the removal of restrictions and the expansion of the range buyers will boost competition among bidders, and, consequently, the sales price. This is important because 80% of the assets of insolvent banks is loans,” – said the Director of the Department of consolidated sales and assets management Julia Borisenko.
However, no direct repurchase by a debtor of his debt is still prohibited, as the purchase of debt by guarantor for this credit agreement.
This innovation should speed up the sale of assets of insolvent banks, which is still proceeding slowly. In 2015, the Fund sold them all for 1 billion UAH. The plan for 2016 was $ 12 billion, but in the end the proceeds from the sale of 3 billion UAH. In the management of the Fund are loans estimated cost of about 90 billion UAH. About half of them – loans to related parties, which were issued either a “sham” or non-existent collateral, such as “junk” securities, reported Eremenko.
The DGF has decided to change the approach to selecting buyers because the banks are not buying credits.
“We would have acquired a loan portfolio, but, as a rule, good anymore. Work with credit very much, but the effect is small. Therefore more profitable for us to work on creating its own customer base,” says Chairman of the Board Idea Bank Mikhail Vlasenko.
In the guarantee Fund do not deny this problem. “Usually, once the Bank is declared bankrupt, even those borrowers who still pay on the loans cease to serve them. And the longer we fail to sell the Bank itself or the credit portfolio, the worse the situation becomes,” says the Deputy managing Director of the Fund Andriy Olenchyk.
Most often debt buy borrowers themselves or through mediation, as the direct purchase prohibited or competitors who want to obtain a tool of pressure on the borrower.
“Before the introduction of the “ProZorro.Sales” up to 90% of such assets redeemed by the debtors under the mediation of financial companies. After starting ProZorro the number of independent potential buyers increased as the market became more open. Therefore, the step DIF will further open the market and increase competition, and therefore may increase the amount of funds received by the Fund from the sale of rights of claim” – expects CEO of UBIZ portal. Alexey Malovichko.
But buyers, even individuals and legal entities – will still be to structure the transaction to purchase rights of claim on loans secured by collateral, through a financial company, because factoring provides financial tools that from the point of view of tax optimization more interesting business than a direct purchase, experts say.
