Effective Asset Management in a Time of Crisis
The effective management of problem and non-core assets is an important economic development tool. Each crisis requires state institutions and their officials to make use of a whole arsenal of legal, financial and management practices. The international practice of transferring bad debt over to specialized banks/funds with the aim of managing and compensating losses from the global economic crisis is a relatively new tool for Russia. In particular, a local bank of marginal assets was created in 2018, when national financial and banking systems were at risk as a result of the problems experienced by the so-called Garden Ring banks. The difficult situation that has arisen in a range of sectors in the economy in the wake of the pandemic will lead to a growth in bad debt. For this reason, we must answer the following questions urgently: How can we minimize these risks? What role will the work on bad debt play in developing the economy and in reforming the banking system? What tools are most effective in managing bad debt, and should we look at best practice within Russia or abroad? How and where can you find an investor for complex assets? How can you return money which has been withdrawn from Russia: via ‘capital amnesty’ or international courts?
