Order of writing off debts

Saturday, 29 November 2014 12:34
Order of writing off debts

If one of the above mentioned virtues is available, Distressed Assets Recovery Unit, within the term not exceeding 7 (seven) days after their occurrence, prepares and sends for consideration of Bad Loan Committee a conclusion concerning possibility of writing off from the balance of the Bank the Customer’s debt under the Contract at the expense of formed insured provision or other way stipulated by the current legislation.

Before providing an issue on writing off the Customer’s debt under the Contract for consideration of Bad Loan Committee, copies of the mentioned conclusion are sent to Accounting unit and Legal Unit of the Bank (by e-mail of the Bank), then these units provide their conclusions concerning the issue which is to be solved.  Term for conclusions to be prepared by above mentioned units can not exceed 3 (three) days after having received a copy of conclusion from Distressed Assets Recovery Unit. In virtue of provided documents to be considered, Bad Loan Committee makes a decision which is executed by the minutes.

If Bad Loan Committee makes a decision to write off debt from the Bank’s balance, this issue is transferred for the consideration of the Management Board, in order stipulated by internal regulatory acts of the Bank.  When the Management Board of the Bank approved appropriate resolution, Distressed Assets Recovery Unit sends a copy of signed minutes to credit administration unit of the Head Office of the Bank/branch in order to fulfill all necessary operations.

Distressed Assets Recovery Unit shall control appropriate and timely fulfillment of procedure of writing off from the balance of the Bank the Customer’s debt under the Contract. Work on debt collection after writing off it from the balance of the Bank is fulfilled by Distressed Assets Recovery Unit before liquidation of the Customer as a legal entity (deregistration from the state registry of legal entities, private individuals – entrepreneurs).

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