From the end of October, ProZorro.Sale Platform has been hosting the first Dutch auction tenders. The new auction model is used for selling assets of insolvent banks that are currently being liquidated. As of November 21, there were 66 auctions held with the estimated total sum of UAN 11,9 mln.
Unlike the English auction, where bidders gradually increase the price of their offer, the Dutch auction aims at lowering the price. In other words, the decrease of the lot price takes place unless any of the bidders stops the process at the sum he/ she is ready to pay.
According to the Deputy Minister for Economic Development and Trade of Ukraine Maksym Nefiodov, the new model is specially designed for fast and effective selling of those lots the price of which is hard to determine or which are not in popular demand on the market. It is also expected that the Dutch auction model will be applied to the objects of small privatization that are hard to sell immediately.
The new model enables to approximate the price to the market level and find the bidder. If it took at least 3-8 months to determine the lot price earlier, now it takes only one day.
A bilingual system with English interface was also created, which provides an opportunity for foreigners to get access to the available information and take part in the auctions.
The Deposit Guarantee Fund plans to sell 1448 lots with the nominal price of UAN 13,9 bln via the ProZorro.Sale Platform by March 2018.
Source: Government portal