The Ministry of Economic Development of Russia is stifling the bankrupts’ property selling platforms

One of the ideas is to reduce the number of trading platforms, selling the property of bankrupt debtors. We should remind that there are 48 platforms now, but it is proposed to reduce their number to 8 in order to increase the control over them. The Ministry is not satisfied with the sale of property at low prices and with the fact that in case of a deal, the creditors get only 5% of the debt.

However, the online platforms spoke out against this initiative, since the most of them specialize only in the sale of bankruptcy property, which will lead to the collapse of sellers.

The entrepreneurs appealed to the Government of the Russian Federation with a letter, addressed to Mikhail Mishustin, calling these events a “market clean-up”. The appeal says that such an initiative will only increase corruption and will also harm both creditors and debtors, and the market as a whole. A sharp reduction in the number of the platforms will lead to the fact that the rest of them will simply not cope with the volume, prices for services will increase, competition will be limited and, as a result, corruption will rise.

While the discussion of the reform is in full swing, electronic platforms have a chance to influence the situation, but at the moment it is quite difficult to predict the outcome. We should remind that earlier, we have been writing about the proposed initiatives on the bankruptcy draft law and the marketplace with the bankrupts’ property.