The Deposit Guarantee Fund tentatively earned around Hr 3 billion ($112 million) from sales of insolvent banks property in 2016.
“We received around Hr 3 billion. We are summarizing the results of the year, as it takes a couple of weeks to calculate everything. The final statistics will be published in the middle of January,” Yulia Bereschenko, director of the consolidated sale and asset management department, said in an interview to Vesti radio on Jan. 5.
Sales of assets of insolvent banks as well as payments of loan debts are sources of income for the fund. The total income at the end of 2016 was around Hr 7 billion ($270 million), and the fund seeks to increase its earnings this year, Bereschenko said.
“Outlining a plan for this year we looked at the income from sales of four categories of assets. The fourth category of assets, so-called ‘special assets’ worth over Hr 50 million ($19 million), didn’t bring anything last year, as most of these large loans were provided to affiliated persons,” she said.
The fund’s loan portfolio includes approximately Hr 90 billion ($3.5 billion) in large loans, half of which were accomodated to bubble companies or for non-existing collateral like ‘junk’ securities.
