The Guarantee Fund will carry out the restructuring of troubled loans in the portfolios of insolvent banks

The Guarantee Fund established a Committee on consolidation, management and sale of property (assets) of banks and approved the regulation on it. The relevant decision of the Department dated April 18, 2019 No. 963 was registered in the Ministry of Justice on May 21.

 

It was determined that the Committee is a permanent collegial body of the Fund, and it carries out activities in the sphere of management of property (assets) of an insolvent bank, which is derived from the market Fund and/or Bank being liquidated on the basis of the Law «On banks and banking activity», including pre-sale preparation of such property for further sale and sale of property of the Bank.

 

The purpose of the Committee is to ensure the organization of measures for the management of property (assets) of one or more banks, ensuring its sale at the highest value.

 

The main tasks of the Committee are as follows:

  • organization of the process of management of property (assets) of banks;
  • definition of terms and actions of pre-sale preparation of property of banks, and also ways, the order and conditions of sale of such property;
  • identification of ways and means of solving problematic issues arising in the sale of property (assets) of banks.

 

The Executive Directorate of the Fund shall, by its decision, delegate to the Committee all or part of its powers on matters defined in the approved Regulations and shall determine their scope.

 

The Committee under its authority shall make decisions on the optimal method/strategy meeting the requirements of the Bank as creditor’s rights of claim (property rights) arising from credit and other contracts of the bank; approval of action plan of claim-related work on private property, the strategy of debt settlement on private property (including through non-judicial, pretrial and trial meet the requirements of banks); determination of the optimal way to meet the requirements of the Bank as a creditor by committing / refraining from committing certain actions, including changes in the method of such satisfaction, the conclusion of a settlement agreement in the process of conducting claim work with the property and the like.

 

The Committee will make decisions on determining the actions of the bank as a creditor in the bankruptcy proceedings of debtors, including on the strategy of filing creditor claims, providing approval to the liquidator of estimates of the value of collateral and the procedure for its implementation, other issues to which the bank as a creditor agrees in the bankruptcy procedure; conducting / refusing to restructure the credit debt of the debtor of the bank.

 

Source: https://bre.is/tQWGTJ_ES