Bank Liquidation and Bankruptcy Administration Services in Serbia

Credit Risk, GBRW Consulting, GBRW Group, Problem Loan Management, Risk Management

GBRW was retained by the Agency for Deposit Insurance, Rehabilitation, Bankruptcy and Liquidation of Banks (the “BRA”), under a World Bank contract, to assist the BRA implement its restructuring plans.

The main objective was the centralization of asset administration for the receiverships of 6 State Banks to achieve the following tasks: 1) sales of the banks’ “exotics” portfolios and a number of the minority and majority equity investments; and 2) the establishment of a centralised Bank Consolidation Unit (BCU) to support the administration of impaired Non Performing Loan (NPL) assets.

More specifically, GBRW completed a loan stratification and review of the loan portfolios of the liquidated banks; identified target sectors and loans where recovery is most likely and effort should be concentrated; and provided detailed Policies and Procedures on loan collections. Finally, GBRW assisted in the preparation for and sale of all eligible banks’ non-impaired loan and equity assets.

Deliverables included:

- Completed a loan stratification and review of the loan portfolio of the liquidated banks;

- Identified target sectors and loans where recovery is most likely and effort should be concentrated;

- Provided detailed Policies and Procedures on loan collections;

- Submitted proposals for staffing a BCU and prepared detailed individual organisation charts;

- Analysed the third country distressed debt portfolio and identified a number of potential buyers;

- Provided Unofficial Appraisals on 20 investments, including the major investments controlled by the BRA;

- Assisted the BRA in initiating and pushing forward the sale process for these investments; and

- Provided initial formal training to bank loan officers as a basis for them to train the rest of their teams.