Creation of the bank's distressed assets - a good idea, but no future - expert

A separate structure, which would have acquired the bad loans from banks, could help solve the problems of public financial institutions, but for the market as a whole, unfortunately, it does not work. This opinion was expressed by partner law firm CAP Consulting Nicholas Dolenko. In addition, he said, the creation in Ukraine of the bank non-performing assets - a task difficult doable. "First, - the lawyer - the question is who will be the owner and, accordingly, to finance such a structure? In order to clear your bank balance on the sale of distressed assets to obtain payment for the sold loans and the substantial delay of payment satisfied he was not will be. " At the same time, he said, getting overdue credit, you must understand that there is a risk nothing at all to get the borrower to either get only some part of it, and perhaps not in the near future. The question is finding an investor who will appreciate and accept those risks. "It should be noted that in Ukraine there are several companies that buy delinquent loans from banks, however, they acquire a very small amount of debt. It is only those credits from the proposed bank, which they see a prospect of work. The creation of a such structure under the state start, coupled with the lack of necessary staff and a carefully designed policy activities, as practice shows, is likely to be fertile ground for a variety of financial abuse ", - said the lawyer. The second important issue, according to Nicholas Dolenko, is in what form such a structure should exist. Since the acquisition of bad loans will be at a discount, such transactions would be classified as factoring. In turn, the factoring may engage in any financial institutions or banks. Third, the lawyer draws attention to the fact that one of the main reasons for small amounts of transactions for the sale of troubled assets has been and remains a bargain price. Loans for which the bank sees more or less a real opportunity to recover the debt, usually not for sale. And to estimate the probability of obtaining money for other problem loans and agree to the bank and the buyer the price turned out to be quite difficult. And, fourthly, the sale of a pool of loans, according to a lawyer requires a very diligent and serious legal work: verification and preparation of a substantial number of documents, registration of changes in the security documentation, etc. Mistakes made at this stage, may be grounds for losing the ability to recover from the debtor's funds for bad loans. As reported, on March 16, during the roundtable, the experts of banking viskazali opinion about the need to create in Ukraine bank's "bad" assets. Also, the roundtable participants did not rule out that the bank is distressed assets, if it will create will be based on Rodovid Bank. Source: business.ua