Auctions for the sale of mortgages bankrupt banks

What is the collateral of banks?

The collateral of banks is property transferred to the balance of banks, which are subsequently recognized as insolvent. Such banks are subject to a liquidation procedure, which includes the formation of the so-called liquidation estate. This is the responsibility of the Deposit Guarantee Fund and is performed through the sequential inventory and accounting of assets of bankrupt banks. Subsequently, the DGF puts up these assets for sale in the ProZorro.Sale electronic system.

The most common forms of collateral for sale are:

• real estate – apartments, houses, offices, plots of land, commercial real estate;
• movables – cars and trucks, office, computer and home appliances, furniture, supplies;
• unpaid invoices and blanket liens.

In what cases does the bank sell collateral?

The sale of bankrupt banks’ assets may be made after the redemption date has expired and the fact of insolvency has been documented. During the preparation of the primary contract between the bank and the client, the methods of compensation, the key circumstances in restructuring payments, force majeure, etc. are discussed.

Anyone can buy collateral, even its former owner. The prospect of repurchasing a debt or buying a collateral is particularly attractive in the light of the fact that the realization is quite fast.

How is collateral of banks realized in Ukraine?

The property of bank debtors may be sold at auction. The second option is the assignment of debt obligations after agreement with the bank.

Auctions for the sale of bank assets can be of two types:

• English – bidding to increase the price with the winner who offered the highest bid;
• Dutch – bidding to lower the price with the winner who first stopped the downgrade process.

What is the ProZorro.Sale system and what are its advantages?

Since 2017, the sale of bankrupt banks’ property is carried out in the ProZorro.Sale system. This ensures the guarantee of realization in the shortest possible time at the most attractive price. This system operates on the same principles as ProZorro does and ensures transparency and openness of the auction.

The main objective of the ProZorro.Sale system is the consolidation of all information about the collateral of Ukrainian banks on one website to provide all interested parties with exhaustive information on all current lots.

Advantages of using the SmartTender platform

The SmartTender platform has all the information about the collateral of banks. All the necessary data are on the page of the lot for sale. In case of additional questions, you can contact the representative of the bank, his or her contacts are freely available.

Our specialists constantly check the relevance of information on lots, so all changes are immediately fixed and marked on the page of the asset for sale. You can easily find the positions you are interested in using the advanced filter system.