Sberbank Russian and the Auction House of the Russian Federation have signed an order of cooperation
20 July 2010, Moscow – Sberbank Russia (RTS: SBER, MICEX: SBER03) and the Auction House of the Russian Federation have signed an “Order of cooperation in realization of property by auction that is secured (owned) by Sberbank Russia”.
In accordance with the order, the Auction House of the Russian Federation is given authority to sell by auction:
- secured property according to foreclosure procedure for the pledged property;
- secured property by agreement of parties;
- property transferred to Sberbank and its regional branches as a compensation for debts from defaulted borrowers.
Liable for sale are: assets, shares of companies, property and rights of claim. In the list of properties for realization out of court, there is no mortgaged property. Residential apartments will not be sold as part of the project.
Sberbank is actively introducing an extrajudicial procedure for regulating issues involving loan defaults. The sale of a secured property at the pre-judicial stage ensures the best financial result, in which both the pledger and pledge-holder are interested in. Resorting to court proceedings involves additional expenses, and a loss of liquidity of the secured property. Encumbrances in the form of legal expenses significantly lowers the cost of the property in sale, and does not make it possible to secure a sufficient sum which would satisfy the expectations of the borrower and creditor.
As a platform for realization of secured property out of court, and also non-core property owned by Sberbank Russia, the Auction House of the Russian Federation has been chosen.