January 8, 2024

The system for meeting collateral-backed claims will be improved

On 29.04.2023, the Presidential Decree “On further improvement of the system for satisfying the claims of creditors secured by collateral” No. UP-63 was adopted.

From January 1, 2024, the Central Bank introduces the following innovations:

– providing an absolute advantage to creditors in satisfying their claims secured by collateral from the value of the pledged property — in the process of insolvency proceedings;

– setting the minimum price below which the mortgaged property cannot be sold at a repeat auction, in the amount of 80% of the starting price of the auction object;

At the same time, if the property is not sold at a repeat auction, the recoverer is invited to keep this property for himself at a price 25% lower than the auction’s starting price.

– preventing the postponement of the sale of foreclosed property at public auction on the basis of the pledgor’s petition;

– the abolition of the practice of ending enforcement proceedings by the state executor and lifting restrictions on the disposal of property in connection with the beginning of the process of voluntary liquidation of the debtor.