Bank SNORAS customer hotline is renewing its activity. Customer hotline will be accesible on business days (Monday to Friday) from 8:00 to 18:00. Information will be provided by phone at the following numbers: in Lithuania - 8 800 272 72 (free of charge), fax (370) 5 232 73 00 , when calling from abroad - +370 5 239 22 39. The customer hotline staff will provide information to individuals and representatives of enterprises about deposits, accounts and personal safe-deposit boxes and advise on the issues related to meeting the obligations to the bank or refinancing.

Residents of Lithuania and enterprises of Vilnius region that held their funds at the nationalised AB bankas SNORAS, to whom insurance compensations will be paid through SEB bank, may inquire about the planned payment of the insured deposits at SEB bank by calling a special SEB phone No. (370) 5 268 2886. Answers to questions of these depositors will be provided at this phone number during business days and weekend from 8:00 to 20:00. More information www.

Frequently asked questions by AB bankas SNORAS customers:

 Вопросы, чаще всего задаваемые клиентами банка SNORAS (пo-pусски):

AB BANKAS SNORAS BANKRUPTCY PROCESS

What is the time frame for creditors of AB bankas SNORAS to file their financial claims?

After the Vilnius District Court made the ruling to initiate bankruptcy proceedings against AB bankas SNORAS (“AB SNORAS”) on 7 December 2011, Neil Hunter Cooper, Senior Partner of Zolfo Cooper LLP, who was appointed as the bank’s bankruptcy administrator, took over the powers to control and manage the bank from its temporary administrator Simon Freakley.

The Court fixed a one-month term for filing financial claims of creditors, which arose prior to the day of initiation of bankruptcy proceedings, to be counted from the day of coming into effect of the ruling to initiate bankruptcy proceedings. The Vilnius District Court informed that this ruling to initiate bankruptcy proceedings came into effect on 20 December 2011. Financial claims of creditors of AB bankas SNORAS, which arose prior to the day of initiation of bankruptcy proceedings, must be submitted by 20 January 2012 to the appointed bank’s administrator Neil Cooper by sending them to the address of AB bankas SNORAS registered office (A. Vivulskio st. 7, Vilnius, Lithuania). The information and the creditor claim form was  published on the bank’s website at www.snoras.com.

IMPORTANT: The Vilnius District Court made a ruling on the extension of the term for the submission of financial claims of AB bankas SNORAS creditors to 10 February 2012. Such decision was made on 13 January 2012 by the judge who instituted bankruptcy proceedings against this bank.

Once the Court has confirmed the creditors’ claims, the first meeting of the creditors will be held. During this meeting, the creditors will set up a creditors’ committee which should represent different categories of the creditors. The creditors’ committee will have to review and approve the current expenses of the bankruptcy process.

AB SNORAS bankruptcy administrator will closely cooperate with the creditors’ committee regarding the possibilities and conditions for selling the bank’s assets.

Before setting up a creditors’ committee, the bankruptcy administrator has a right to apply to the court seeking confirmation of the performance of important actions to secure creditor claims.

DEPOSITORS

Is my money held at AB bankas SNORAS safe?

Yes, deposits are safe. Pursuant to the Republic of Lithuania Law on Insurance of Deposits and Liabilities to Investors, deposits of legal entities and natural persons and cash (in litas, US dollar, euro and national currencies of the European Union Member States and the European Economic Area states) in the accounts are insured by the State up to the amount of LTL 345,280 (EUR 100,000). For more information on the conditions, see the website www.iidraudimas.lt.

Is money held at a bank account or salary received to an account also treated as a deposit and will they be compensated?

Yes, deposits and funds in bank accounts are treated in the same way.

Will the compensation of LTL 345,280 be paid to individuals only or enterprises may also expect to receive this compensation?

It will be paid to both natural persons and legal entities.

When will it be possible to recover the deposit held at AB bankas SNORAS?

According to the Law on Insurance of Deposits and Liabilities to Investors, the revocation of the bank’s licence is considered to be an insured event. Insurance compensations to depositors are made in litas within 20 business days from the date of the insured event. Under extraordinary circumstances, the council of the insurance company may, upon agreement with the supervisory authority, extend this term by no more than 10 business days.

Which bank will pay insurance compensations to individuals that held their funds at AB bankas SNORAS?

LITHUANIA. The banks that repay the compensations were selected on 28th of November. The State enterprise “Indėlių ir investicijų draudimas” selected AB SEB bankas as the bank that will pay insurance compensations to individuals.

Which bank will pay insurance compensations to legal entities that held their funds at AB bankas SNORAS?

Insurance compensations for legal entities will be paid in the following banks:

in Vilnius region – AB SEB bankas, tel. + 370 5 268 2886, website

in Kaunas region – AB Ūkio bankas, tel. + 370 37 787 655, website

in Klaipėda region – Danske bankas, website 

in Šiauliai region – AB Šiaulių bankas, website 

in Panevėžys region – Nordea bankas, website 

in Alytus and Marijampolė regions – AB bankas Swedbank, website 

in Telšiai and Utena regions – AB DnB bankas, website 

in Tauragė region – UAB Medicinos bankas, website 

Insurance compensations for depositors shall be paid within 20 working days from the day of an insured event (24th  of November). Under the exceptional conditions and when concerted with the supervisory authority the council of the insurance undertaking may extend this time limit for up to 10 working days.

Do individuals and enterprises need to provide any information or any documents about the deposit they had at AB bankas SNORAS?

Neither individuals, nor enterprises should rush to banks, it is also not necessary to take any additional actions to inform banks or to provide any documents to them, since all required information will be received by banks from the State enterprise “Indėlių ir investicijų draudimas”.

When will individuals and enterprises receive insurance compensations for their funds held at AB bankas SNORAS?

The possibility to control the funds will be restored by the end of the year.

WHO MAY NOT CLAIM DEPOSIT INSURANCE COMPENSATIONS?

The following cases are provided in Article 12 of the Law on Insurance of Deposits and Liabilities to Investors:

Article 12. Limitations on Compensations

1. Compensations shall not be paid in the following cases:

1) to depositors or investors whose deposits or liabilities to the investors have been declared by a court ruling as acquired illegally;

2) to depositors or investors whose deposits or liabilities to the investors have been transferred, subject to contracts or any other way (with the exception of inheritance), after the day of the insured event;

3) to heads of the administration of a bank, a credit union or undertaking, heads of the subsidiaries/branches of a bank, a credit union or undertaking, members of the council/supervisory board and the board; to persons having at least 5 per cent of the bank's authorised capital, or persons holding at least 50 per cent of the capital of undertakings having at least 5 per cent of the bank's share capital; to persons who are carrying out independent audit of a bank, a credit union or undertaking; to children, adopted children, spouses, cohabitants living in registered partnership, parents and adoptive parents of the persons indicated above;

4) to borrowers of a bank, a credit union or undertaking where the deposits or liabilities to the investors are not in excess of their liabilities (the outstanding loans and interest). If the deposit of a borrower of a bank, a credit union or undertaking or liabilities to the investor are in excess of this borrower’s liabilities (the outstanding loans and interest), the insured sum shall be calculated by deducting the liabilities of the borrower from the deposit or liabilities to the investor, however, it may not be higher than the amount specified in Article 9(3) of this Law;

5) for deposits kept in anonymous and coded accounts;

6) for deposits for which the insured has fixed the interest rate twice as high as the interest rate set for comparable deposits held with the same credit institution.

2. Payment of compensations to the depositors and investors against whom an application has been filed with law enforcement agencies or courts in respect to the legality of acquisition of their deposit funds or liabilities, but no ruling has been made yet, shall be suspended, pending coming into effect of the appropriate ruling.

HOLDERS OF BONDS, DEPOSIT CERTIFICATES, SHAREHOLDERS AND OTHER CREDITORS

In the case of bankruptcy, the claims of the bank’s creditors are satisfied in the following way according to the Republic of Lithuania Law on Banks:

Article 87. Order of Satisfaction of Creditors’ Claims

1. The claims of employees related to employment relationship, the claims to compensate for damage done due to mutilation or other bodily injury, contraction of an occupational disease or death as a result of an accident at work shall be satisfied first.

2. The claims of the State undertaking “Deposit and Investment Insurance” on the expenses related to the payment of insurance benefits to the depositors or investors of a bank referred in the Law on Insurance of Deposits and Liabilities to Investors shall be satisfied second.

3. The claims related to the payment of taxes and making other payments to the budget and benefits of compulsory State social insurance and compulsory health insurance as well as to the granted loans received on behalf of the State and with the guarantee of the State shall be satisfied third.

4. Other claims of a bank’s creditors, with the exception of the claims referred to in paragraphs 1, 2, 3, 5 and 6 of this Article, shall be satisfied fourth.

5. The claims of creditors related to trust loans granted to the bank and non-equity securities having all characteristics of a trust loan issued by the bank, with the exception of the claims referred to in paragraph 6 of this Article shall be satisfied fifth.

6. The claims of the creditors related to non-equity securities issued by the bank that have all characteristics of a trust loan and whose acquisition transactions provide that claims according to them are satisfied only after the claims of other bank creditors, including claims related to trust loans granted to the bank and other non-equity securities having all characteristics of a trust loan issued by the bank shall be satisfied sixth.

7. The claims of a bank’s shareholders holding a qualifying holding in the bank’s authorised capital and/or voting rights, members of the bank’s supervisory board, members of the bank’s board and the heads of the bank's administration shall be satisfied seventh.

EMPLOYEES OF THE BANK THAT WENT BANKRUPT

Settlement with the employees is provided for by the Enterprise Bankruptcy Law:

Article 19. Regulation of Employment Relations

1. The administrator shall, within three working days from the entry into force of the court ruling to initiate bankruptcy proceedings against the enterprise, notify the employees of the enterprise in writing of the intended termination of the employment contract and terminate the employment contracts with them after 15 working days from such notification.

The administrator shall, not later than within three working days from the entry into force of the court ruling to initiate bankruptcy proceedings against the enterprise, notify the territorial labour exchange office, the municipal institution and representatives of the employees of the enterprise of the intended dismissal of employees.

2. Upon termination of the employment contract, the dismissed employee shall be paid severance pay in the amount of his two average monthly salaries.

3. Settlement with the employee to be dismissed shall be effected in accordance with the procedure laid down in Article 35 of this Law.

4. The number of employees according to positions who are to be recruited under fixed-term agreements for work during the enterprises bankruptcy process shall be determined by the meeting of creditors. The list of such employees shall be drawn up by the administrator.

RECIPIENTS OF “SODRA” BENEFITS

What should be done by the persons who up to now received social security benefits to accounts at the bank SNORAS?

Since transfers to accounts at the bank SNORAS are suspended, those individuals, who already have an account at another credit institution, should apply to the territorial branch of “Sodra” according to their place of residence and submit a request concerning the transfer of benefits to another account. “Sodra” informed that those persons, who have not yet changed their accounts and the time of payment of their benefits is approaching, will be contacted personally and invited to visit another payment institution, where they should open an account, to which all funds payable to them will be transferred.

Working pensioners, to whom benefits are usually paid on the 28th day of each month and who up to now received their pensions to accounts at the bank SNORAS, should immediately contact credit institutions or territorial branches of “Sodra” and inform about their new accounts, to which they wish to receive their benefits.

Those persons who have already submitted requests regarding the transfer of sickness benefits to accounts at the bank SNORAS, but have not received them, should also contact territorial branches of “Sodra”. These benefits are not paid periodically, but according to the recipient’s request. After the restriction of “Snoras” activity, the transfer of sickness benefits to the accounts at this bank was suspended. After the recipients of sickness benefits inform about their new accounts in other credit institutions, they will receive the benefits payable to them.

What should I do, if I am not in Lithuania at the moment or I can not change my account at the bank “Snoras” to another account due to other reasons?

Although “Sodra” benefits will not be transferred to accounts at the bank “SNORAS”, people will not lose these benefits. “Sodra” invites such recipients of benefits to contact a “Sodra” branch immediately, as soon as they have a possibility, and inform it about their account in another credit institution. After receiving this information, the benefits will be transferred to them.

For more information, please see “Sodra” website.

SETTLEMENTS WITH UAB SNORO LIZINGAS

The term for the regular payment of an instalment to UAB SNORO lizingas has come.Earlier I transferred money to the account of this company at the bank “SNORAS”, however, now this account is blocked.What should I do?

UAB SNORO lizingas has announced two of its accounts at AB “Swedbank” and AB SEB bankas, to which it asks its customers to pay their instalments temporarily according to the instalment code or by payment order. More information is available at  the company’s website. Information is also provided by UAB SNORO lizingas phone No. +370 700 55 888.