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2011-11-23
The most frequently asked questions of AB Bank SNORAS clients

DEPOSITORS

Is my money safe in this bank?

Deposits are safe. According to the Republic of Lithuania Law on Insuring Deposits and Obligations for Investors, legal and natural persons’ deposits and cash (in litas, USA dollars, euros and in the national currencies of the member states of the European Union and the countries of the European Economic Area) in accounts up to 345 280 litas (100 000 euros) are insured by the state. More information about the conditions can be found on the website http://www.iidraudimas.lt/
http://www.lb.lt/dazniausiai_uzduodami_klausimai

Is money in the current account is treated in the same manner as a deposit and is a compensation provided for it?

Yes, deposits and funds in the current account are treated equally.


Is 345 280 Lt payout expected to be paid only to residents, or can companies expect it too?

Both to natural and legal persons.

When will it be possible to get back the deposit?

The possibility to get back a part of the deposit, kept in the current account, is already available at the moment: The Board of the Bank of Lithuania has permitted the temporary administrator of the bank to provide services to natural and legal persons while they withdraw (pay out) or transfer funds up to 500 litas per day from each account managed by a natural or legal person, if the payment operations are performed while the payer uses the payment card, and since 23 November 2011 the temporary administrator of the bank was granted the right to issue this amount in some customer service subdivisions as well. Presently the provision of the bank's services is actively sought to be resumed to a greater extent.
                             
Will the interest be also paid while taking back a time deposit?

Yes, the interest is calculated according to the bank's obligations and must be paid out. By taking back the deposit before the term stipulated in the agreement, the clients will forfeit the earned interest.

OWNERS OF BONDS AND DEPOSIT CERTIFICATES

Will at least a part of the money be returned for the bonds and deposit certificates distributed by AB Bank SNORAS?

It will depend on the results of the assessment of the bank's financial status being performed by the temporary administrator of the bank as well as on what proposals and conclusions of the temporary administrator of the bank and decisions of other state institutions will be.


RECIPIENTS OF “SODRA” BENEFITS

Will pensions, maternity and other “Sodra” benefits be paid out from AB Bank SNORAS accounts?

Recipients of social benefits, like other AB Bank SNORAS clients, presently can withdraw from ATMs 500 Lt per day. The Board of the Bank of Lithuania has given the permission to AB Bank SNORAS not later than since 23 November 2011 to perform that operation in some customer service subdivisions of the bank as well.

The Board of the State Social Insurance Fund reminds that all recipients of the social insurance benefits, whose accounts are in Bank SNORAS and who have received through them the benefits belonging to them, will continue receiving all benefits as until now.
More about it: http://www.sodra.lt/index.php?cid=182&new_id=21297


COMPANIES AND ORGANISATIONS

When will it be possible to dispose the funds available in current accounts?

It will depend on the results of the assessment of the bank's financial status being performed by the temporary administrator of the bank as well as on what proposals and conclusions of the temporary administrator of the bank and decisions of other state institutions will be. It is clearly comprehended that the possibility for companies to use the funds available in the accounts is vitally important; therefore, efforts are made to resume the smooth provision of services as soon as possible. Business will be informed immediately about the possibility to dispose funds to a greater extent when the decisions, stipulating it, are adopted.


SHAREHOLDERS

What will happen to the current shares of AB Bank SNORAS?

By the resolution of the Government as of 16 November 2011 it was decided to take the shares of AB Bank SNORAS for the public needs, i.e. from the moment when the Government resolution came into force (from the moment of making the announcement via the mass media) the account custodians had to immediately make records in the accounts about taking over 100 per cent ownership of AB Bank SNORAS shares for the state ownership.

On the basis of parts 1 and 6 of article 8 of the Law on Financial Stability, if the Government takes over the bank's shares for the public needs, afterwards the price of the bank's shares should be confirmed by the Government, taking into consideration the proposals of the audit company and (or) the property evaluation company. After establishing the price of the bank's shares, it will be announced in writing to the former shareholders of the bank according to part 5 of article 8 of the Law on Financial Stability (not later than within 5 days the notification is sent out by registered mail to each former shareholder).

The Law on Financial Stability also stipulates that, while the former shareholders of the bank are paid the established price of shares for the shares being accepted, they are also paid the interest in the amount established in part 1 of article 6.210 of the Civil Code (5 per cent annual interest) from the price of the shares which belongs to them to be paid for the shares being accepted for the period since the day when the resolution to take the shares came into force till the day of settlement with the former shareholders. Settlements with the former shareholders of the bank, who do not inform about the accounts opened (available) in credit institutions, shall be made under the order established in article 6.56 of the Civil Code.

What will happen to the shares of the paid for but not registered new emission of AB Bank SNORAS? 

The Board of the Bank of Lithuania, after recognizing that the former main shareholders of AB Bank SNORAS - Vladimir Antonov and Raimondas Baranauskas - are persons who do not have the impeccable reputation, decided not to permit to register the changes in the bank's articles of association related to increasing the authorized capital.  
The resolution was adopted by taking into consideration the sanction designated by the resolution of the Board of the Bank of Lithuania as of 16 November 2011 – the restriction of the activity and also the fact that during the application of the sanction the heads of the bank and the owners of the bank's qualifying share of the authorized capital and (or) voting rights were Vladimir Antonov and Raimondas Baranauskas. After issuing the permission to register the changes of the articles of association of AB Bank SNORAS, these persons could become the bank's shareholders again. The Board stated that registration of the articles of association would violate the proprietary interests of the bank's creditors.
After the Board of the Bank of Lithuania decided to refuse to issue the permission to AB Bank SNORAS to register the change in the bank's articles of association, related to increasing the authorized capital of the bank, the persons who paid for the bank's shares acquired the right to require that AB Bank SNORAS would return to them the money paid for the subscribed shares. The requirements in writing would have to be submitted to AB Bank SNORAS.
However, at the moment the question of repaying the funds to the investors for the subscribed shares, like the questions of executing other requirements of the bank's creditors, should be solved by taking into consideration that the bank's activity restrictions are established and the temporary administrator is appointed to the Public Limited Liability Company Bank SNORAS.
 

DAILY OPERATIONS

When will it be possible to execute money orders via the e-banking system of AB Bank SNORAS?

The Board of the Bank of Lithuania has permitted the temporary administrator of the bank to provide services to natural and legal persons while they withdraw (pay out) or transfer funds up to 500 litas per day from each account managed by a natural or legal person, if the payment operations are performed while the payer uses the payment card, or the services of e-banking, and while performing the mentioned operations not later than since 23 November 2011 in some customer service subdivisions of the bank as well. We are sorry but for technical reasons AB Bank SNORAS cannot resume its e-banking system yet. When it is accomplished, it will be announced on the bank's website and in the media.

BORROWERS OF THE BANK

I have taken a loan from AB Bank SNORAS. Should I repay it according to the usual schedule or is it possible to make a pause while the bank's activity is suspended?

The Bank's activity restriction (moratorium) does not make an impact on executing your assumed obligations according to the loan agreement; therefore, you should repay the loan or other payments stipulated under the agreement according to the schedule.

Will instalments for loans and other payments according to the agreements reach AB Bank SNORAS?

It is possible to pay such instalments to AB Bank SNORAS through other credit institutions and they are reckoned. These instalments through AB Bank SNORAS can be paid in the same scope as it is stipulated in the resolution of the Board of the Bank of Lithuania (the Board of the Bank of Lithuania has permitted the temporary administrator of the bank to provide services to natural and legal persons while they withdraw (pay out) or transfer funds up to 500 litas per day from each account managed by a natural or legal person, if the payment operations are performed while the payer uses the payment card, or the services of e-banking (please note that it is performed as much as technical facilities allow), and while performing the mentioned operations not later than since 23 November 2011 in some customer service subdivisions of the bank as well).

Concerning unfinished payments: why some approved operations of the bank have not been executed, while the funds from the accounts have been debited and have not been restored (including the commission fees for the non-provided services)?

Presently the Board of the Bank of Lithuania has allowed to AB Bank SNORAS to perform provision of payment services if it is necessary for repaying the funds to the payers, which, before this resolution came into force, were debited from the payer's payment account, or, if there is no payment account, the funds, because of which the payment order was submitted, however, AB Bank SNORAS payment orders related to such funds were not included in the payment system.


CONCERNING THE DEFAULT INTEREST

Who will cover the clients' default interest to the utilities providers, the state institutions, credit institutions, other providers of services, which will arise due to the frozen accounts of AB Bank SNORAS?

We are sorry but presently the clients cannot perform transfers or payments to other institutions. The question of the default interest is stipulated in the agreements between providers of goods and services and between the clients. Therefore, we suggest you should address those companies, organisations or institutions to which payments had to be scheduled and to inquire whether the default interest will be applied under these circumstances.

Some state institutions have already announced that, as payments are delayed due to the restrictions in Bank SNORAS, the default interest will not be calculated.
The Board of the State Social Insurance Fund (“Sodra” Board) made a public announcement that AB Bank SNORAS clients (insurers), whose monetary operations are restricted not because of their fault, can be released from paying the default interest. If the insurer is obligated to pay instalments of the state social insurance, however, he cannot do it due to the restricted operations of AB Bank SNORAS, he should address the territorial division of “Sodra” Board with the request to be released from paying the default interest. State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania also informed that AB Bank SNORAS clients (both residents and companies), whose monetary operations are restricted not because of their fault, can be released from the default interest. The law on administrating taxes regulates the release from the default interest if the tax law is violated due to the circumstances which do not depend on the will of the tax payer and which he did not anticipate and could not anticipate.
If the tax payer is obligated to pay the taxes but he cannot do it due to the restricted operations of Bank SNORAS, he must address the tax administrator with the request to be released from the default interest.

Can I demand from the bank to compensate for the default interest due to the payments which were not performed on time?

The Law on Banks indicates that penalties for non-execution of the bank's obligation or improper execution are not calculated and are not paid during the restriction of the bank's activity.

REFINANCING
1. What do I have to do to re-finance?
In the first instance, customers who wish to re-finance their existing SNORAS banking relationships should call our Customer Call Centre on free phone 8 800 272 72. For overseas customers, the number is +370 5 239 22 39. Customers should also complete the relevant form on our website and send it via email to [#]. Customers will then be contacted by their usual account manager to take the process forward.
We are currently working with relevant parties to put in place a process for refinancing and will provide further details shortly.

2. I currently have undrawn committed facilities with SNORAS. Can I draw down on these facilities?
Unfortunately, due to the appointment of the Bankruptcy Administrator on 7 December 2011, the Bank of Lithuania has revoked SNORAS’ banking licence. Accordingly, we are unable to carry out banking activities including providing further monies to our customers.

3. My loan is guaranteed by INVEGA. Who should I speak to regarding this?
Please call our Customer Call Centre on 8 800 272 72 in the first instance.

4. My loan is guaranteed by ZUPGF. Who should I speak to regarding this?

Please call our Customer Call Centre on 8 800 272 72 in the first instance.

5. I have tried to pay my loan obligations but I am not sure what has happened to these monies. Have they been received by SNORAS?
Customers should check their account statements via internet banking to identify whether payments have been made.

6. I do not want to re-finance. Can I continue to service my loan obligations as normal?
Your loan obligations to SNORAS continue and interest will continue to accrue on loans. We are working hard with relevant parties to put in place a process for our customers to service their loans. There will be a further announcement in respect of loan processing shortly.


7. How to I find out the current balance of my loan?
Customers should check their statements via internet banking. We are currently reconciling our customers’ accounts. This means that we will shortly be in a position to provide our customers with a redemption statement as part of the refinancing process.

8. Do I need to pay off my loan in full in order to re-finance?

The terms of the loan contract still apply. Customers will need to pay off their loan in full in order to re-finance. This includes the principal amount of the loan, accrued interest and any other costs under the terms of your existing finance documents with the bank.

9. I have a deposit and also a loan with Snoras. Can I offset these amounts? How does this impact my claim under the Deposit Insurance Fund?

Under Lithuanian law, our understanding is that customers are unable to set off amounts owed to the bank with deposits held by the bank.

We are currently working closely with the Ministry of Finance, the Bank of Lithuania and the Deposit Insurance Fund to help them calculate the amounts that are due to our customers under the deposit insurance scheme. 

LOAN HOLDERS 


Notwithstanding the bankruptcy proceedings commenced against AB Bankas SNORAS on 7 December 2011, the obligations of customers to whom the Bank made loans continue in accordance with the terms of those loans. Although there has been a period of disruption in respect of interest and principal payments in respect of loans these are now resolved and loan servicing and payment shall continue as normal with certain necessary adjustments explained on our web site and here in these answers.

1.
Where can I learn the exact sum which I must pay according to the current obligations?
You can learn the exact sums of obligations in the banking system "Internet Bank+", by calling to the toll free line 8 800 27272 and by using the telephone banking service (if you are an existing subscriber of this service).
If you want to learn your exact account balances and the sums of obligations by phone, you will have to inform the bank employee about your date of birth and the client code (which you can find in the payment account agreement) and/or the password designated for providing services by phone (which can be found in the payment card agreement).

2. 
For which period should I pay the ordinary payments and the accrued interest?
You should pay the ordinary payments and the accrued interest for the period since 16 November 2011. If your ordinary payment for November 2011 was paid before 16 November 2011, you should pay the ordinary payment for December 2011, which is indicated in the loan redemption agreement.

3.
Until when must I pay the overdue payments?
The ordinary payments for November, December and January and the accrued interest must be paid before 01 February 2012.

4. 
Will default interest be calculated for 16 November 2011 to 31 January overdue payments?
Default interest for the unpaid interest and principal payments falling due in the period 16 November 2011 to 31 January 2012 will not be payable.

5.
Can I transfer payments by using Bank SNORAS internet banking system?
We are unable to operate the Bank SNORAS internet banking system for making payments.  You can pay instalments only by transfer of funds from another bank.

6. 
I have no possibility to execute my obligations. Where should I contact concerning postponement of the ordinary loan redemption payments?
You should contact the bank concerning postponement of the loan redemption payments and make arrangement concerning a meeting. You can contact by calling to the toll free line 8 800 27272 or by sending a query by e-mail paskolos@snoras.com or by filling in the form at the bank website.

7.
If I transfer a payment amount that is smaller than indicated in the loan redemption schedule, will default interest be calculated?
The default interest will be calculated from 01/02/2012 for the obligations not fulfilled by that day.

8. 
According to the loan agreement, the instalments payment schedule had to be changed after 16/11/2011. Will the instalments payment schedule be changed and how will I receive it?
The recalculation of variable interest will be carried out under the order stipulated in the agreement. Concerning the change of other conditions of the loan agreement, you should contact the bank and arrange a meeting. You can contact by calling to the toll free line 8 800 27272 or by sending a query by e-mail paskolos@snoras.com or by filling in the  form at the bank website.

9. 
Which information must be specified while paying the instalment?
The payers, desiring that the loan would be covered with their transferred funds according to the loan redemption schedule, should indicate "1" in the field "Instalment code" of the order form.
The clients, desiring to cover the loan or its part prematurely, should indicate "2" in the field "Instalment code" of the order form as well as contact the bank and submit the application in writing (concerning a meeting the client should call to the bank's Contact Centre, send e-mail to paskolos@snoras.com or fill in the form at the bank's website http://www.snoras.com/).
The payers, while transferring the instalments in currency, should indicate the code of the person in whose name the taken loan is covered with the transferred funds. The personal code, the name and surname must be indicated for natural persons, and the legal entity code and the name - for legal persons. The payer should additionally indicate the account number of the client, on whose behalf the loan instalment is covered, located in Bank SNORAS and indicated in the loan agreement.

10. 
If the ordinary instalment is the last one according to the loan agreement, where should I contact concerning the documents, related to processing the loan agreement (cancelling the property pledge, etc.)?
You should contact the bank concerning the loan agreement termination and make arrangement concerning a meeting. You can contact by calling to the toll free line 8 800 27272 or by sending a query by e-mail paskolos@snoras.com or by filling in the established form at the bank website.

11. 
Will the changes in the loan redemption schedule, stipulated in the agreement, be performed if it is provided for in the agreement that for one year I pay only interest in a linear way, and after a year - the loan instalment and interest in annuity way?
All the changes stipulated in the agreement will be performed.

12. 
What information about the loan in Bank SNORAS and about its performed coverage will I see in the electronic banking system "Internet Bank+"?
Clients may check the size of the sum payable according to each loan by connecting to the programme of the bank services provision on-line "Internet Bank+" and by choosing the appropriate loan transaction in the section "Loans". In the opened window "Payable sums" the client's sum due to be paid for the period from 16 November 2011 until 28 December 2011 is displayed in the table "Information about overdue payments". Information about the sum and the date of the next payment is provided in the table of the same window "Information about the next payment".


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AB Bank SNORAS
7 A.Vivulskio Str. LT-03221 Vilnius
Phone: + 370 5  239 2239
Fax: + 370 5  232 7300
E-mail: info@snoras.com
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