Ecex.Exchange, non-performing loans (NPLs), banks and how Ziggurat token will help.

1. Ecex.Exchange Trading Platform, NPSs, banks.

Currently, world markets for distressed debt tend to be characterized by comparatively small trade volumes, a limited number of active investors and large bid-ask spreads. This might reflect various factors, such as significant differences in the required rates of return for banks and investors and in loan recovery expectations, and how servicing costs are taken into account. Ecex.Exchange understand how this market currently functions and gather information how could assist its further development. In particular, it is of interest to ascertain if there are specific the gap to fill that constrain the assignment of loans.(Ecex.Exchange expertise)

The lack of independent servicing capacity in some markets may hinder the development of liquid secondary markets for loans and especially distressed debt. That kind of independent services Ecex.Exchange exactly propose. Furthermore, when banks and credit companies assign defaulted loans, third-party servicers as Ecex.Exchange represents an alternative to manage those loans on behalf of investors, which usually do not have appropriate capacity to service NPLs.

2. Assignment of loans

Banks may assign performing or non-performing loans to outside investors in order to manage the composition of their balance sheet, their risks and to allow a potential business model re-orientation. Loan contracts can, in principle, be assigned from the originating creditor to a third-party investor under private law regimes. This is most often done via an assignment agreement with the new creditor, which takes over the original creditor’s rights and obligations.

Ecex.Exchange Trading Platform is meant exactly for that kind of business.Banks will introduce NPLs on our platform and potential assignees will obtain the rights trough assignment agreement.

Sales can contribute to strengthening banks’ balance sheets and their profitability in the medium to long-term, as the transferring bank would not incur the additional administrative expenses and potential additional losses related to the future management of the loans. In addition, removing NPLs from a bank’s balance sheet reduces the uncertainty around the bank’s asset quality and loan valuations, as uncertainty on possible future losses associated with the NPL portfolio disappears. In the short term, however, the assignment of NPLs might in some cases stress the bank’s capital position and raise concerns regarding the viability of the bank.

In some cases, assignee of NPL contracts, including non-banks, may be more effective in recovering value, in particular through the potential use of better management and servicing. Especially some smaller banks may lack the required in-house capacities and internal processes to manage large portfolios of non-performing loans. Moreover, banks and non-bank investors may face a different set of incentives and constraints when managing loans. Banks may be more reluctant to restructure loans to avoid moral hazard and so-called strategic defaults of existing borrowers.

Today an important aspect of the functioning of secondary markets for NPLs are the large bid-ask spreads. Ecex.Exchange will reduce spreads and it decreases uncertainties about future cash flows, information asymmetries between assignors and assignees and also first-mover disadvantages/ coordination challenges. Together, these factors may significantly constrain the price discovery process. Potential assignees tend not to have access to reliable, granular, readily available standardized information on asset quality and loan tapes in banks. As a consequence, potential assignees may in some cases offer a price that does not reflect the value of portfolios for sale, thus hindering potential transactions.However, Ecex.Exchange provides stock market like price possibilities and assignors and assignees will present they best prices and wills and it is nature of the business that at some point prices are suitable for both parties.


Ziggurat tokens shall provide for the user, today’s case the banks, opportunities to sell and buy assignments (NPLs) for certain prices. There is the example:

All service fees are for Ziggurat Token holders payable with Ziggurat Tokens.

Let assume that assignment cost is 20 EUR. Ziggurat Tokens holder will pay 20 Ziggurats.

Let assume that guest service fee is 50 EUR.Ziggurat Tokens holder will pay 50 Ziggurats.

For paying for Exec.Exchange Trading Platform services Ziggurat Tokens can be used on exchange rate 1 ZIG = 1 USD (this rate only Ecex.Exchange Trading Platform if paying for services.).

We project our assignments amount several million, in the end, third year. It gives great opportunity trade tokens in free marketplaces or uses them on Ecex.Exchange Trading Platform.The Ziggurat Tokens will be an integral part of the Ecex.Exchange Trading Platform as a means to support and pay for the services on the Ecex.Exchange Trading Platform.

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