OREANDA-NEWS. Speaking at a press conference, Director of the NBU Risk Management Department, Mr Ihor Budnyk, said that in 2016 the National Bank of Ukraine expects to recover UAH 12.8 billion in proceeds from the sale of collateral pledged against refinancing loans.

“In 2016, the NBU expects to recover the outstanding debt on refinancing loans for a total of UAH 12.8 billion through the sale of collateral, out of which UAH 7.1 billion in proceeds is expected from the sale of property rights under loan agreements, including about UAH 4.4 billion in proceeds from expected and already accumulated principal repayments under the loan portfolio held by Delta Bank JSC.  The NBU expects to recover another UAH 4 billion in proceeds from the sale of securities and UAH 1.7 billion more from the sale of real estate,” said Mr Budnyk.

According to him, in 2015 the NBU actually collected UAH 1.1 billion in proceeds from the sale of collateral.

The expected increase in proceeds can be attributed to the duration of stages in the process related to the handling of problematic assets. The collateral pledged by some banks that were put into resolution in 2014-2015 may be sold only in 2016.

“Additionally, we have great expectations regarding the Consolidated Office established at the Deposit Guarantee Fund, which will soon become fully operational. Its responsibilities will include the management and sale of assets of insolvent banks. This Office is to become fully operational on 1 April 2016,” said Mr Budnyk.

The NBU, in close cooperation with the Fund, has developed a draft appraisal methodology to evaluate property rights under loan agreements.  The NBU jointly with the State Property Fund has set up a Working Group that will have to finalize this project within two months.

As of 1 February 2016, the outstanding debts owed by banks to the regulator under refinancing loan agreements amounted to UAH 103.2 billion, including UAH 95.87 billion in principal and UAH 7.36 billion in accrued interest.