Oshchadbank wants to sell non-performing loans at “Dutch auctions” with the possibility of discounting, Deputy Chairman of the Management Board Andrei Stetsevich said, ET reports quoting FinClub.
“Currently, we are actively communicating with the Ministry of Finance and the Cabinet of Ministers in order to launch the formula, as per which the Deposit Insurance Fund works, and enable banks to use the Dutch auction. When the net asset value is sold with the possibility of discounting”, Stetsevich said.
In his opinion, it will allow state banks to avoid possible criminal prosecutions in the future.
“The state banks have not many tools for solving non-performing loans. Because any writing-off or discounting entails the criminal risk for C-level executives. That is why the strategy is chosen, when it is better not to take any decision on the portfolio than take at least some decisions”, he noted.
Andrei Stetsevich told that Oshchadbank places huge emphasis on the financial restructuring mechanism. Four companies with arrears, amounting to UAH 4.2 bln, were restructured under it. The assets, amounting to UAH 2 bln, were put onto the bank’s books to repay the arrears to the bank.
On March 19, the 5th case on the financial restructuring of Torf Land Ukraine for UAH 400 mln was also finalized. According to him, there is one more case in the secretariat – Ukrvtorchormet for UAH 4.3 bln.
The representative of Oshchadbank reminded that over 92% of the non-performing loans of the bank are the largest 25 financial industrial groups.
The non-performing loans of the bank: Crimea – UAH 18 bln; ATO – UAH 3.5 bln; crisis 2008-2009 and 2013-2014 – UAH 35.5 bln.
“NPL level in terms of the loans, disbursed after 2014 – 0.05%”, Andrei Stetsevich stated.
He also reminded that currently, Oshchadbank is in litigation with Russia for the Crimean assets, amounting to USD 1.4 bln.
“There is a probability of taking the decision within the next few months”, he noted.
