CEE Real Estate Matters
  • Login
  • Register
  • Home
  • News
    • All
    • Awards
    • Big Moves
    • Deals
    • Legislation
    • Projects & Developments
    • Research & Reports
    Savills to Manage Logistics Asset for EQT Exeter

    Savills to Manage Logistics Asset for EQT Exeter

    Trei Opens 29th Vendo Park in Poland

    Trei Opens 29th Vendo Park in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Impact Completes Luxuria Residence in Bucharest

    Impact Completes Luxuria Residence in Bucharest

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Accolade Announces New Project in Sulechow

    Accolade Announces New Project in Sulechow

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    White Star Logistics to Build New Park in Torun

    White Star Logistics to Build New Park in Torun

    • Deals
    • Projects & Developments
    • Big Moves
    • Legislation
    • Research & Reports
    • Awards
  • Analysis
    • Interviews
    • Trends
    • Expert Opinion
  • Countries
    • Albania
    • Austria
    • Belarus
    • Bosnia and Herzegovina
    • Bulgaria
    • Croatia
    • Czech Republic
    • Estonia
    • Greece
    • Hungary
    • Kosovo
    • Latvia
    • Lithuania
    • Moldova
    • Montenegro
    • North Macedonia
    • Poland
    • Romania
    • Russia
    • Serbia
    • Slovakia
    • Slovenia
    • Turkey
    • Ukraine
  • Segments
    • Retail
    • Industrial & Logistics
    • Office
    • Residential
No Result
View All Result
SUBSCRIBE
  • Home
  • News
    • All
    • Awards
    • Big Moves
    • Deals
    • Legislation
    • Projects & Developments
    • Research & Reports
    Savills to Manage Logistics Asset for EQT Exeter

    Savills to Manage Logistics Asset for EQT Exeter

    Trei Opens 29th Vendo Park in Poland

    Trei Opens 29th Vendo Park in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Echo Investment Divests Three Office Buildings in Poland

    Impact Completes Luxuria Residence in Bucharest

    Impact Completes Luxuria Residence in Bucharest

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague

    Accolade Announces New Project in Sulechow

    Accolade Announces New Project in Sulechow

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    One United Properties Announces the Handover of One Cotroceni Park Phase I

    White Star Logistics to Build New Park in Torun

    White Star Logistics to Build New Park in Torun

    • Deals
    • Projects & Developments
    • Big Moves
    • Legislation
    • Research & Reports
    • Awards
  • Analysis
    • Interviews
    • Trends
    • Expert Opinion
  • Countries
    • Albania
    • Austria
    • Belarus
    • Bosnia and Herzegovina
    • Bulgaria
    • Croatia
    • Czech Republic
    • Estonia
    • Greece
    • Hungary
    • Kosovo
    • Latvia
    • Lithuania
    • Moldova
    • Montenegro
    • North Macedonia
    • Poland
    • Romania
    • Russia
    • Serbia
    • Slovakia
    • Slovenia
    • Turkey
    • Ukraine
  • Segments
    • Retail
    • Industrial & Logistics
    • Office
    • Residential
No Result
View All Result
CEE Real Estate Matters
No Result
View All Result
Home Countries Belarus

Belarus: Improvements on Property Sale in Insolvency Proceedings

September 28, 2021
in Expert Opinion
0
Belarus: Improvements on Property Sale in Insolvency Proceedings
75
VIEWS
Share on LinkedinShare on FacebookShare on Twitter
ADVERTISEMENT

On November 13, 2019, the Resolution of the Ministry of Economy of the Republic of Belarus dated April 01, 2019 No. 9 “On electronic auction for the sale of property in economic insolvency (bankruptcy) proceedings” entered into force (the “Resolution”).

The Resolution does not contain transitional provisions so that it shall be applied to any auction in insolvency held from November 13 (including the property transferred for sale earlier, or rebidding).

This Resolution enshrined the so-called “Dutch” auction – for decrease. Auctions in such a format help to attract more bidders, quickly sell poorly sold property, involve unused objects in the economic turnover, which will improve business in the country as a whole. It will also increase and improve the turnover of bankruptcy assets (i.e. the debtor’s property) since even the most expensive low-liquid asset will find its buyer with a price reduction of 80%. Electronic auction also ensures transparency of the bidding process itself.

The essence of such an auction in Belarussian insolvency proceedings is that the initial and minimum prices (below which the object cannot be sold) are set and starting from the second hour, in the absence of bids, the price is reduced by one step, which cannot be less than 5% of the initial price. The minimum price shall not be less than 60% of the initial one, and not less than 20% of the initial price – for rebidding. Though the Resolution has been recently adopted, the practice has already revealed a number of gaps and application issues.

One of the gaps was the absence of a body authorised to set a minimum price. But the Ministry of Economy has published an official explanation, which refers it to the competence of the meeting of creditors. The meeting can also decide to transfer the competence to the creditors’ committee or the anti-crisis manager.

Some of the provisions of the Resolution are in contradiction with the provisions of the law on insolvency (bankruptcy) proceedings (e.g., electronic auction is held without creating a commission). The judicial authorities are of the opinion that bankruptcy proceedings should be conducted only in accordance with the legislative acts on insolvency (bankruptcy), but not with the ministries’ acts, as it is prescribed by the Economic Procedural Code. Moreover, some anti-crisis managers also stand on this position on penalty of administrative and criminal liability for violation of the legislation on insolvency.

The Department for Sanitation and Bankruptcy of the Ministry of Economy (the “Department”) clarified the status of these documents (the Resolution, letters and information on the official sites of the Ministry of Economy and the Department): this is the official position of the Ministry of Economy and the Department, and it is a guide to action for anticrisis managers.

According to the Department data, only about 30-35% of bankrupt companies’ property sales are carried out through an electronic auction. The Director of the Department has set a task for the anti-crisis managers to bring the number of electronic auctions to 70% by summer 2020. Following the results of the World Bank’s research “Doing Business” in 190 countries, Belarus ranks 74th in the section “resolving insolvency”. Despite the rapid duration (on average 1.5 years) and low financial costs of the procedure, the debt repayment ratio is low. However, compared to 2019, the Ministry of Economy notes an increase in the debt repayment ratio. The introduction of the Dutch auction method will help improve this indicator.

By Darya Gaiduchyk, Associate, Cobalt

Originally published on CEE Legal Matters

Recommended Stories

VGP Names David Plzak as Country Manager for the Czech Republic

VGP Names David Plzak as Country Manager for the Czech Republic

September 21, 2021
HB Reavis’ Nivy Mall Welcomes 330,000 Visitors in Its First Week in Slovakia

HB Reavis’ Nivy Mall Welcomes 330,000 Visitors in Its First Week in Slovakia

October 12, 2021
Assisted by Colliers and Otto Immobilien, Teeamo Opens 10th Store in Austria in One Year

Assisted by Colliers and Otto Immobilien, Teeamo Opens 10th Store in Austria in One Year

November 24, 2021

Popular Stories

  • Interview with Antoine Assi, Group CEO, Estia Developments

    Interview with Antoine Assi, Group CEO, Estia Developments

    32 shares
    Share 13 Tweet 8
  • Interview with Anders Liljenstolpe, CEO, JLL Russia & CIS

    15 shares
    Share 6 Tweet 4
  • ELI Secures EUR 111 Million Financing for Logistics Portfolio

    11 shares
    Share 4 Tweet 3
  • Interview with Pepijn Morshuis, CEO, Trei Real Estate

    10 shares
    Share 4 Tweet 3
  • Cromwell appoints Piotr Gozdziewicz as Senior Investment Manager CEE

    9 shares
    Share 4 Tweet 2
Facebook LinkedIn Twitter RSS
CEE Real Estate Matters

CEE Real Estate Matters is an online and eZine format publication dedicated to the fast-moving real estate markets in Central and Eastern Europe. Our diligent team of journalists works tirelessly to bring about news and analysis in five key areas: residential, office, retail, logistics and proptech. We guide real estate professionals through the complexities of these sectors, from stand-out development projects and deals, to financing, legislation and big executive moves.


Our mission is, simply, to be the go-to source of information about real estate markets in Central and Eastern Europe.

Recent Posts

  • Savills to Manage Logistics Asset for EQT Exeter
  • Trei Opens 29th Vendo Park in Poland
  • Skanska Signs Large Lease in the Nowy Rynek Office Complex in Poland
  • Echo Investment Divests Three Office Buildings in Poland
  • Impact Completes Luxuria Residence in Bucharest
  • Penta Real Estate and PSN Announce Project to Replace Former Transgas Building in Prague
  • Accolade Announces New Project in Sulechow

Impressum

CEE Real Estate Matters SRL

Clucerului 19, Bucharest, Romania

email: press@ceerealestatematters.com

We welcome both formal press releases and other less formal summaries informing us of relevant news. News can be sent to our email address above. While we do our best to process releases in other languages, we greatly appreciate English language notifications. We greatly appreciate readers informing us of developments of significance that do not relate to their companies directly, in which case, sources will not be identified without their express permission.

© 2021 CEE Real Estate Matters - Powered by CEE Legal Matters.

No Result
View All Result
  • Home
  • News
    • Deals
    • Leases
    • Projects & Developments
    • Big Moves
    • Financing
    • Research & Reports
  • Analysis
    • Trends
    • Expert Opinion
    • Legislation
    • Interviews
  • Segments
    • Retail
    • Industrial & Logistics
    • Residential
    • Office

© 2021 CEE Real Estate Matters - Powered by CEE Legal Matters.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?