Economist: ARMA ignores financial interests of the state by announcing a tender for the management of the Gulliver shopping center without taking into account loan obligations

The announcement by the Asset Recovery and Management Agency of a tender to select a manager for Gulliver Financial and Construction Company without taking into account loan obligations to state-owned banks, including Oschadbank, may indicate deliberate corruption in the interests of the new manager and damage to the state. This opinion was expressed by economist Andriy Novak in an exclusive commentary to UNN.

The fact that ARMA did not take into account the interests of the state bank when determining the manager for the Gulliver shopping center is completely wrong... The interests of Oschadbank, which lent to the Gulliver shopping center, should have been taken into account. The fact that they are not taken into account already suggests deliberate corrupt practices in the interests of the new future manager, who has probably already been agreed upon, and this will cause direct damage to the state bank as well. If this happens, in addition to direct losses, it will also set a very negative example for similar situations, an example that ARMA can make decisions that will cause damage to the state or the owner. This is a bad trend, because it is a signal to the financial world that such unconditional financial rules do not work in Ukraine

According to him, failure to make loan payments could undermine Oschadbank's financial plans. Although the loan amount is apparently not critical for the bank, its non-payment will affect its financial position, worsening stability and causing losses, which, in turn, will affect annual and multi-year financial planning.

The economist emphasized that Oschadbank has the right to appeal the ARMA's decision in court and defend its rights.

"In the banking system as a whole, more than a third of loans are recognized by the banks themselves as either problematic or irrecoverable, meaning that they realize they will not be repaid. Stories like this, especially with the state-owned Oschadbank, for a fairly large amount, are again a bad signal for the entire banking system, which is not in a perfect state, to put it mildly. In such circumstances, the ARMA should, on the contrary, primarily protect the lenders - Oschadbank, but for some reason it does the exact opposite, causing losses to it," Novak added.

Context

As you know, ARMA has announced a competition to select a manager for the Gulliver shopping and entertainment center. The head of the agency, Olena Duma, proudly stated that she had taken the strictest possible approach to the selection of the manager of this high-profile asset and even set the maximum possible 4 criteria for candidates. Among the conditions to be fulfilled by the bidders are property worth at least UAH 100 million, a professional team, proven experience in managing similar facilities, and proven financial solvency.

The building of the Gulliver shopping center is pledged as collateral for a mortgage loan with state-owned banks, including Oschadbank. However, among the criteriaissued by ARMA, there is no mention of the need to repay the loan.

Oshchadbank has repeatedly stated that the decision to transfer Gulliver to ARMA is detrimental to the interests of the state-owned bank, as it will deprive it of loan payments from the company that owns the capital's complex. The losses of Oschadbank due to the termination of loan payments could reach more than UAH 20 billion.

Moreover, Arsen Miliutin, deputy chairman of the board of Oschadbank responsible for NPLs, said in a commentary to UNN that the state-owned bank plans to recover the building of the capital's Gulliver shopping center in its favor if ARMA transfers it to management. He expressed indignation that instead of paying the loan to state banks, Gulliver's earnings would be given to an "incomprehensible manager".