On October 17, the "Financial Club" held a closed meeting on "Executive Service Reform: Will Private Entrepreneurs Help Quickly Debt Companies". The reform started in October 2016, when the parliament created conditions for competition in the market for the implementation of court decisions. Then the state lost its monopoly, and field professionals - lawyers, lawyers and arbitration managers - allowed them to become private executors and take up debt collection. But for a year on the market there were only 69 private performers, which is ten times less than in the state executive service (ICE).
Joe Director of the Department of the State Bailiff Service of the Ministry of Justice Vitaliy Chepurnyi said that out of 5.8 thousand state executives provided for their regular staffing, they currently employ only 4.4 thousand people: "Vacancies - 25%!". With such under-staffing, the ICE does not handle hundreds of thousands of court decisions. The load per executor at times exceeds 2 thousand cases per month.
This gives a chance to private performers. The order of 65% of enforcement proceedings by volume amounts to be opened in favor of banks - both solvent and bankrupt bankers, which deals with the Guarantee Fund for Individuals (FGVFO). Private executives began to come up with business offers to banks and FGVFOs to find their first customers.
The FGVFO has already discussed options for cooperation with a few private performers. Such cooperation is very likely, since state executives are overloaded with work and they do not have the time to increase the effectiveness of the pursuit and collection of assets. While private executives are just starting out: 698 specialists have been opened in a month for 69 professionals. "There are seven productions per one performer, which is very small, since each performer, taking into account the work of assistants, can process more than 100 executive proceedings per month", - says the private performer Dmitry Lyapin.
Oleg Plotnichenko, Deputy Director of the Legal Department of the State Property Fund, emphasizes that there are still too few private performers. "The Institute of Private Entrepreneurs is not a panacea for all problem debts, and the current number of private performers, unfortunately, does not allow to cover all the problem debts that are under the management of the Fund," says Oleg Plotnichenko. This was also emphasized by the bankers who took part in the discussion of the "Financial Club". They are ready to download private executors to work on asset recovery, if they will be "coverage" throughout the country.
Market participants during the closed meeting of the "Financial Club" also discussed the urgent problems of the new market segment: the size of remuneration of private performers; impossibility of transferring enforcement proceedings from ICE to private performers; the complexity of introducing an automated arrest of debtors' assets and assets. In addition, private executors can not yet deal with mortgages on mortgage loans, as there is still a moratorium. Also, they can not levy debt from legal entities.
Olga Bilay, Director of the Department of Asset Management of the State Property Fund of Ukraine, Olga Bilay, said that the law now allows private executors to work with debts up to UAH 6 million, while the bulk of the bankrupt bank's portfolio is large loans. Retail, among bankrupt banks, was mainly concentrated in the Delta Bank and the "Forum", but enforcement proceedings are already in the work of ICE. "Private executives are more likely to work with the debtors of banks that went bankrupt in 2016-2017," Olga Bilay predicts.
Yuriy Moiseyev, Deputy Director of the Department of Litigation and Bankruptcy of the Ministry of Justice, suggested that a small number of private executives may be called due to the fact that they wish to enter this market are simply waiting for the restrictions on the amount of debt to be recovered to be recovered. But wishing is even now. "By the end of October, we are conducting weekly examinations to enter new entrants' markets," he said.
Ruslan Sidorovich, a member of the Verkhovna Rada Committee on Legal Policy and Justice, suggested that the Ministry of Justice expand the list of universities that train private executives and make the examination procedure more transparent. "We must allow everyone who wants and possesses the necessary knowledge to access," he said. The Justice Ministry is ready to go for it. According to the participants of the discussion, hundreds of new private performers can enter the market, and then information about them will go beyond the narrow professional circle.
More than 30 bankers, lawyers and private executives became members of the closed meeting.
The moderator of the event was the Managing Partner of the "Financial Club" Ruslan Chorny.
(translated using google translate)