Valuation of property for collateral purposes

Market and liquidation value of property, shares and participatory interests pledged to a bank

We value commercial real estate, machinery and equipment, vehicles, inventory, shares and participatory interests in the charter capital pledged to a bank.

Valuation for collateral purposes is carried out when a loan is obtained, when the pledged asset is periodically revalued and on foreclosure. If the initial sale price of mortgaged real estate is determined on the basis of a valuer's report, it is set at 80% of its market value (Article 54 of Federal Law No. 102-FZ "On Mortgage (Pledge of Real Estate)").

Market value is determined in accordance with Federal Valuation Standard FSO No. 9 "Valuation for Collateral Purposes" and, at the bank's request, liquidation value as well, taking into account the terms of foreclosure. The valuation report sets out conclusions on the liquidity and exposure period of the pledged asset with supporting analysis for the lending decision.