13 December 2019
The Director of the asset sales Department, Nurseit Mukashev, told about this process
Today, the problem loan Fund manages the largest portfolio of problem assets in the country. In 2019, it began full-scale work on the implementation of objects purchased as part of the recovery of the banking sector. About how open this process is and what "non-working" assets are on the Fund's balance sheet in an interview with the correspondent "Капитал.kz "Director of the asset sales Department of JSC "Fund of problem loan" Nurseit Mukashev said.
- Nurseit Adilovich, please tell us how the Fund sells non-performing assets of banks and what methods?
- We sell assets on the website of the state property register of the Information and accounting center under the Ministry of Finance of the Republic of Kazakhstan.
Auctions are held in the form of an auction or tender, both for raising and lowering the price. This makes it possible to sell the Fund's assets at a real market price.
To a greater extent, we use auction, and here the prevailing factor is the price.
However, any legal entity or individual who has expressed such a desire can participate in the auction.
- Are there any preferences for individual participants, for example, in order to maintain the real economy?
- Only if requested by the local Executive body. For example, if the mayor's office sees a prospect in a particular enterprise, it has the right to ask us to apply additional parameters in the auction that indicate the social significance of the object. For example, saving the city-forming enterprise according to the current activity profile. If the object meets these conditions, we organize a tender, where we specify all the relevant parameters for which the acquiring company will bear social obligations.
In other cases, the Fund does not have social obligations when selling the property.
- What assets are currently on the Fund's balance sheet?
- If you look at the structure of our assets, the main part of it is land plots, mainly farms. In General, the pool of assets of the Fund for sale is represented by commercial real estate, residential funds and property complexes, as well as movable property.
We also have old factories and some production areas in our assets, for example, a printing line was recently implemented.
- How many non-performing assets have the Fund already sold and for what period?
- I would like to note that the sale started only in February of this year, mainly of BTA Bank's assets. Up to this point, the Foundation has been preparing property items. At the same time, a lively sales phase occurred in August-September, when we launched a call center for information support of potential buyers and a new version of the site focused on sales.
Since then, the Fund has already sold 108 lots consisting of 226 objects, worth about 4 billion tenge.
- And how does the bidding process itself work?
- After a decision is made to sell a certain group of assets, an independent appraisal company evaluates them. At its end, we place an ad for the implementation of the object on the electronic trading platform of the state property register of the Ministry of Finance.
In General, there are 5 stages of trading using English or Dutch methods. At the first stage, auctions are held to increase the price, at the second stage-to lower the price to minus 20% of the estimated value, the third stage is held again to increase, but with the possibility of purchasing the object in installments for up to three years. If the object is not sold at this stage, then the fourth auction is held to lower the price to 50% of the estimated price. Well, at the fifth and last stage, the auction is again held to reduce the price to 50% of the estimated price, but with the possibility of purchasing the object in installments for up to three years. For clarity, we have developed an infographic on the stages of trading.
It should also be noted that before participating in the auction, the Fund provides a potential buyer with the opportunity to view the object of interest. Since the Fund's facilities are located throughout the country, electronic auctions allow for a centralized implementation process that reaches the interested audience.
- From what sources do potential buyers learn about the auction?
- This information is available on the website of the state register, as well as on the website of our Fund fpl.kz or call +7 (727) 355 01 11.
In addition, to reach a larger audience of potential buyers, we conduct marketing events and use targeted advertising in social networks.
So, according to available data, more than 80 thousand users – potential bidders-have already been registered on the state register's website.
- I wonder if foreigners can participate in the auction?
- The auction is attended by persons registered on this resource and allowed to bid, there are no restrictions on the part of the Fund. This issue is regulated by the regulations of the state register website. However, we have not yet observed any foreign participants for the assets actually sold.
- How transparent is the bidding process?
- The Fund is responsible for correctly entering data about the object of trading on the trading platform, for title documents, technical parameters and evaluation. At the same time, we do not have the opportunity to interfere in the auction, check potential buyers. Therefore, we do not know the number of bidders, let alone who they are, until the end of the auction. Also, the auction participants themselves, along with the Fund, do not have access to this information.
Only after the auction is completed, the winner's data becomes available to the Fund, we receive their details and conclude an agreement with them in electronic format.
In addition, I would note that the auction held on the website of the state register can not be canceled, since the object is already considered implemented, and our task is to assist in its re-registration to the winner.
- What are the deadlines for re-registration?
- The purchase and sale agreement defines a one-month period.
- Who is involved in asset valuation?
- By law, they are independent appraisal companies, i.e. third-party organizations that have the appropriate license to conduct such activities. As a rule, they use one of three methods of evaluation: revenue, cost, or comparative, and we also have no right to influence this choice. Therefore, such a company independently bears all the risks in its "valuation" report.
However, any assessment is only valid for 6 months from the date it was submitted.
- Are there any successful examples of asset sales to date?
- Yes, as one example – a brick factory in the city of Taraz – it was not in perfect condition, but the investor found it attractive and bought it at auction. Today, the owner intends to revive production and create new jobs, he is sure that he will succeed.
I would add that we are doing everything to ensure that the process does not stand still, that is, every asset is in circulation: either at the evaluation stage or at the stages of its implementation. After all, while this process is going on, the Fund bears the cost of maintenance (security, utilities, etc.). Therefore, we are now forcing the task of involving the purchased assets in economic turnover.