The state-owned PrivatBank has put up for sale "bad" loans totaling 5.2 billion hryvnias. This refers to over 658,000 unsecured consumer loans granted to individuals, which have been deemed irrecoverable and written off through reserve funds.

The loans were put up for sale via the SE "SETAM" platform, and the auction itself is scheduled for August 14. The minimum sale price of the lot is 1.20% of the initial price. According to Serhiy Velikdanov, owner of the non-bank financial group "VSC Group", this portfolio of PrivatBank could be sold for 62 million UAH, or 1.2% of the starting price.

Why do banks sell consumer loans at auctions? How common is this practice? Who buys them and why? What are the risks for the debtor? Read about this in the article. LIGA.net.

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