PrivatBank to sell UAH 5.2 billion overdue loans: what will happen to debtors.

PrivatBank is preparing to hold an auction to sell overdue loans totaling UAH 5.2 billion on August 14. This initiative will help the bank reduce its loan portfolio.

What exactly will be put up for auction and the terms of sale

At the auction, 658 thousand unsecured consumer loans will be presented. Among them, the average debt is about UAH 7.9 thousand, while the largest is UAH 250 thousand. These are loans issued over the last 20 years, most of which have been overdue since before the war began.

It is worth noting that the sale does not include loans to military personnel, mobilized individuals, and residents of combat zones and occupied territories. The lot will be sold using the Dutch auction scheme at the starting price of UAH 5.2 billion, which will be reduced to a minimum of UAH 62.45 million.

The future of debtors

The new owner of the debts, usually a collection company, will acquire all the rights of the bank without needing the consent of the debtors. Collectors typically employ active debt recovery methods through phone calls, SMS, and court claims.

There are restrictions on their activities from 9:00 AM to 7:00 PM and a requirement to obtain the debtor's consent for contact. If violations occur, they can be documented and a complaint can be filed with the NBU or the police. Additionally, recently the High Court of London recognized that Kolomoisky and Bogolyubov must compensate PrivatBank for losses of about USD 2 billion.

PrivatBank intends to hold an auction for the sale of overdue loans for a significant amount, which will help the bank optimize its loan portfolio. Loans to military personnel and residents of combat zones will not be included in the sale, and the auction terms are set within the framework of the Dutch auction scheme. After the sale, the new owner of the debts will acquire all the rights of the bank and will have the opportunity to demand repayment of the debt in the established manner.