Lithuania: update for Snoras creditor’s
Snoras creditors attempt to raise their chances on retrieving bigger portion of their assets held in Snoras brought bitter results. After appealing the confirmed Snoras creditors listing, creditors issued request to the court to refer to Lithuanian Constitutional court in order to provide ruling whether current standing of State company „Deposit and Investment Insurance” (DII) as 2nd in the creditors row under banking law is compatible with Constitution. As state becoming a sole share holder of the Snoras bank should share the fall and be in the same listing with bank shareholders, board members etc.
On 5 th of July Lithuanian Constitutional court, responding to the request of Snoras creditors has declared that construction of creditors listing in Lithuanian law on banks is compatible with Constitution.
Vilnius regional court refused request to refer to European Court of Justice for preliminary ruling and granted state company „Deposit and Investment Insurance” 2nd place in creditors listing upholding it’s 3,982 m LTL claim, 3rd place for “Tax authority” (1,762 m LTL) as well as “Social security fund” (9,457 m LTL) and Turto bank (1,428 m LTL).
Curentlly deposits under 100 000 EUR held in Snoras bank are reimbursed by AB SEB bank under Deposit and Investment Insurance scheme. For foreign entities SEB requests to have a bank account opened in Lithuania in the name of Snoras deposit holder. It shall not necessarily have to be an account in SEB bank, thus investors may turn to other banks closely cooperating with foreign account holders.
For more information, please contact Gencs Valters law firm.