ProZorro.Sale launches Dutch auctions to sell assets of banks with expiring liquidation period
The ProZorro.Sale e-trade system will soon launch Dutch auctions, according to the website of the Ministry of Economic Development and Trade.
First of all, the Ministry of Economic Development and Trade plans to sell the assets of banks, whose liquidation period terminates soon, under the procedure of Dutch auctions.
"The use of the Dutch procedure will ensure the sale of assets for which buyers cannot be found for a long time. And the Individuals' Deposit Guarantee Fund will be able to receive additional funds to pay to depositors," the press service said citing First Deputy Minister of Economic Development and Trade Maksym Nefyodov.
The agency also said that Dutch auctions are different from the conventional model in that the auction lasts one day and the assets are traded with a decrease in price. In the course of trading the value of assets may fall to 20% of the starting price. In addition, you can register for participation in the auction on the day of auction.