Loan claims (NPL) at auction: how bank debts are bought

Banks do not only issue loans — they also sell those that are not being repaid: non-performing loans, or NPL. The buyer acquires a loan claim: they become the creditor and recover the debt from the borrower or through the collateral themselves. On Prozorro.Sale such sales are open to everyone.

Who sells

• State banks — Oschadbank, Ukrgasbank, Ukreximbank. They sell claims on loans to individuals and companies, as well as property that has already passed to the bank as collateral: land plots, parking spaces, real estate. These lots are in the “Non-performing loans” catalogue.
• The Deposit Guarantee Fund (DGF) sells claims of banks in liquidation — individually or in pools. They are in the “Bank assets · DGF” catalogue; the Fund’s other assets are covered in a separate guide.

What exactly you buy

A loan claim is neither money nor property but the right to demand repayment of a debt. Its value depends on what can actually be recovered:

• the size of the debt — principal, interest, penalties;
• security — collateral (real estate, vehicles, equipment) or a guarantee; without security a debt is much harder to recover;
• the status of the case — whether there is a court judgement, open enforcement proceedings, whether the limitation period has expired;
• the debtor — whether the company is operating, whether it is bankrupt, whether it has assets and income.

The price of a loan claim is usually well below the amount of the debt — precisely because of these risks.

Who it suits

Loan claims are bought by financial companies, collection agencies, investors and those interested in the collateral itself: buying the debt can give control over the collateral. Buying claims on loans to individuals has its own restrictions and buyer requirements — check the announcement. For large deals, involve a lawyer.

How to take part

1. Study the lot documents: for many lots the full loan file is provided after signing a non-disclosure agreement — the announcement says so.
2. Register on one of the accredited Prozorro.Sale e-marketplaces, pay the fees and apply before the deadline.
3. Take part in the auction online. Some lots are sold at Dutch auctions, where the price goes down.
4. After winning — payment and the assignment of claim agreement within the deadlines in the announcement.

State bank lots

DGF loan claims

There are few such lots, and they appear irregularly. Save a filter — the radar will message you in Telegram as soon as a bank puts up a new portfolio.

This is an overview for orientation, not legal or financial advice. The binding terms of each auction are in its announcement and documents on prozorro.sale.