Banks, Financial Services, Insurance, Legislation, Lithuania

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 08:36

Lithuanian Supreme Court: Snoras' CDs covered by insurance, bonds not

BC, Vilnius, 17.11.2015.Print version
Holders of Snoras' certificates of deposit (CDs) will recover their money, but bonds issued by the now-bankrupt Lithuanian bank are not covered by the deposit insurance system, the Lithuanian Supreme Court ruled on November 17th, reports LETA/BNS.

Snoras issued around 87 million euros worth of CDs and 95.6 million euros worth of bonds.

The Supreme Court's ruling is final and not subject to appeal.

 

The EU Court of Justice decided last June that Lithuania had not properly disposed the EU's directive on deposit guarantee schemes into national legislation.

 

The holders of either CDs or bonds have not recovered their money after the bank's collapse as they were not insured as regular deposits are. Nevertheless, thousands of investors in Lithuania have challenged the validity of their agreements with Snoras.

 

A Vilnius court is hearing more than 200 civil cases where plaintiffs are challenging agreements for the acquisition of CDs from Snoras. The total value of their claims amounts to over 6.4 million euros.

 

Another 400 plaintiffs are challenging bond subscription agreements with Snoras, with the total value of their claims at over 4.6 million euros.

 

Snoras' operations were suspended on Nov. 16, 2011 and bankruptcy proceedings against the bank were opened on Dec. 7.






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