Banks, EU – Baltic States, Financial Services, Investments, Legislation, Lithuania, Loan

The Lithuanian Competition Council cleared the deal on Monday, saying that it will not strengthen a dominant position or significantly impeded competition in the market.

The competition body gave the green light for Deutsche Bank and Pine River Fixed Income Lux Investments and Pine River Lux Investments, as well as Baltijos Kredito Sprendimai (Baltic Credit Solutions, or BKS) to acquire joint control of a part of Snoras' loan portfolio.

It was announced in August that Snoras' loan portfolio was being sold for at least 169.685 million euros, the minimum price set by Snoras' creditors committee. However, the exact value of the transaction has not been disclosed.

The nominal value of the loan portfolio is not being disclosed either, but it is said that the portfolio is made up of consumer loans and other loans, and leasing and other debt agreements, including terminated and non-performing loans.

Snoras' net loan portfolio (after provisions) totaled 285.3 million euros at the end of last year. It amounted to 1.083 billion euros before the bank's bankruptcy in November 2011 and to 745.5 million euros on the day bankruptcy proceedings were opened. Some 405 million euros in loans and interest was paid back to Snoras by the end of 2014.

Deutsche Bank last year took part in the sale of the loan portfolio of Latvijas Krajbanka, which was part of the Snoras Group. The German banking group financed the transaction.