ADIF plans to raise threshold for direct sales on Electronic Auction Portal

The Azerbaijani Deposit Insurance Fund (ADIF) is considering increasing the maximum price for assets sold through the direct sale mechanism on the Electronic Auction Portal to increase user activity, Azer Amirov, head of the ADIF's legal department, said at the Dialogue and Cooperation Forum, organized on the occasion of National Press Day, Report informs.

According to him, the portal was created for the sale of assets valued up to 1,000 manats, particularly perishable goods and low-value assets.

Current regulations stipulate the direct sale mechanism for assets below this value, he said.

"The portal has considerable potential, but to date we have not been able to achieve significant sales results through this platform. There are a number of reasons for this. During the initial stages of bank liquidation, it was not always possible to promptly post professional photographs of assets on the portal that met market requirements. Furthermore, many assets had accumulated during the operation of the liquidated banks and were of a mass nature. They had to be stored in warehouses, which also negatively impacted the effectiveness of sales through the portal," he noted.

Amirov added that the Fund had long lacked a specialized unit to handle the sale of such assets.

"We had to manage this process using a single unit with a very limited staff. After personnel and structural reforms, a specialized unit was established to manage assets more effectively. We expect to improve the portal and achieve increased sales, although it should be noted that such assets constitute only a small portion of the assets of liquidated banks," he said.

According to the ADIF representative, the majority of assets consist of real estate, cars, and banking equipment.

"As a rule, the value of these assets exceeds 1,000 manats, so they are sold through open auctions conducted by specialized auction organizations. Such organizations are required to publish advertisements in the media. We have already begun monitoring their activities to ensure that advertisements are posted more clearly and reach the widest possible range of potential buyers," Amirov emphasized.

He also noted that the Fund is once again considering increasing the current 1,000 manats limit for direct sales, as this amount is no longer appropriate given the current economic realities.

"It's likely that this threshold needs to be reconsidered and increased. We previously made such a proposal, but it was not supported. Now, taking into account the new conditions, we plan to amend the rules. If the proposal is approved, the limit will be increased. We believe that raising the threshold, for example to 5,000 manats, as well as effective promotion of the portal, will significantly increase buyer activity and sales volumes," the Fund representative concluded.

($1=1.7 manats)