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The Government decides to take over the shares of the bank Snoras for public needs

Date

2011 11 16

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In accordance with the Law on Financial Stability providing for timely measures to be applied to ensure country`s financial stability and seeking to protect depositors` funds, as well as taking into account the findings and recommendations of the Bank of Lithuania, and the public interest, the Government has decided to take over the shares of the bank Snoras for public needs. Bank shareholders will be compensated for their shares in accordance with the law, following the assessment of bank assets.

The decision has been taken following the assessment of Snoras’ financial condition, as well as on the basis of the findings of the Bank of Lithuania, stating the risk of bank’s assets being less than its liabilities.

Following the analysis of the information provided by the Bank of Lithuania, and being convinced that other measures provided in the laws are insufficient for the financial stabilization of the bank Snoras, it was agreed that the decision of taking over 100 percent shares of the bank Snoras for public needs was the only effective way to protect depositors` interests and to reduce the potential costs for the Government. The decision has been taken also considering the information submitted by the Bank of Lithuania regarding the significant outflows from the bank accounts.

The Government intends to restructure the troubled bank by transferring insured deposits together with the best quality assets to the bank set-up by the state, so as to secure the bank`s business continuity.

It should be noted that all deposits up to 100.000 euros are insured, as required by the relevant European Union regulations.