2011-11-25
Almost 90 per cent of the AB bankas SNORAS depositors will be repaid all their money
The deposit insurance scheme operating in Lithuania covers almost 90 per cent of deposits of natural persons and legal entities held with the AB bankas SNORAS.
“The major share of customers of the AB bankas SNORAS has no real grounds to be worried about deposits – they are subject to the deposit insurance protection and the law guarantees the repayment of their money,”– said Mr Audrius Misevičius, member of the Bank of Lithuania Board.
Deposits of legal entities and natural persons held with the AB bankas SNORAS make up LTL 5.6 billion and insurance compensations would amount to LTL 4.1 billion. With the activation of the insurance scheme, 11.1 thousand of legal entities (88.5% of all legal entities having deposits with this bank) and 376.3 thousand of natural persons (88.3%) will be repaid the total amount of their deposits.
We would like to remind you that 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 dollars, euros and national currencies of the European Union Member States, Iceland Krona, Norwegian Krone, Swiss Franc) in the accounts in one bank taken together are insured by the State up to the amount of LTL 345.280 (EUR 100.000). The notion of “a deposit” covers money of both, natural persons and legal entities on current accounts.
The Law provides that insurance compensations of the insured under bankruptcy (in this case – AB bankas SNORAS) will be paid from the funds of the Deposit Insurance Fund administered by an insurance undertaking. Insurance compensations shall be paid within 20 working days from the day of bankruptcy proceedings against the insured. The council of the insurance undertaking may extend this time limit for not more than 10 working days. The way of the payment of insurance compensations shall be chosen by the insurance undertaking. In each case of the payment of insurance compensations, the insurance undertaking shall inform the public through media about the place and procedure for paying insurance compensations.
Pursuant to the Law, insurance compensations shall not be paid to heads of the administration of a bank, heads of branches of a credit union, members of the council (supervisory board) and the board, to the persons holding more than 50 per cent of a bank’s share capital, to their children, adopted children, spouses, cohabitants living registered partnership, parents and adoptive parents, as well as to other persons provided by the Law.
The payment of compensations to the depositors against whom an application has been filed with law enforcement agencies or courts in respect to the legality of acquisition of their deposit funds, but no ruling has been made yet, shall be suspended until the coming into effect of an appropriate ruling.
Uninsured deposits shall include securities issued by the insured itself (deposit certificates) and liabilities related with its accepted and promissory notes, mortgage bonds issued pursuant to the Law on Mortgage Bonds and Mortgage Lending. Also, deposits or liabilities on them of the Bank of Lithuania, the State Company “Deposit and Investment Insurance”, credit institutions, financial brokerage firms, insurance undertakings operating pursuant to the Law on Insurance, pension funds, management companies, enterprises engaged in leasing (financial leasing), deposits or liabilities of collective investment undertakings shall not be insured.