Algirdo str. 31, Vilnius, LT-03219
Tel. 8 5 2135657
Company code: 110069451
E-mail idf@idf.lt

Purpose of the fund

 

Resolution fund (RF) is financed by subjects set out in Law on Financial Stability (LFS) article 1 part 2 point 3, that do not fall under scope of EU Reg. No. 806/2014 regulation, as defined by regulation article 2, and by subjects licensed in third party countries acting within Lithianian Republic, in line with procedure set out by Lithuanian Law on Deposit and Investment Insurance and EU regulations. Other subjects named in LFS article 1 part 2, contribute to Single Resolution Fund in line with procedure in line with EU Reg. No. 806/2014 and its bylaws.

RF can be used, when applying resolution measures following actions are neccessary:

  • guarantee assets or liabilities of subject under resolution, its managing company, temporary institution, wealth management company or by applying business transfer measure, purchasing persons assets or liabilities.
  • provide loan to the of subject under resolution, its managing company, temporary institution, wealth management company or by applying business transfer measure, purchasing persons.
  • buy assets of the subject under resolution.
  • in line with LFS article 78 requirements, finance temporary institution temporary institution, wealth management company or by applying business transfer measure, purchasing persons;

5) pay compensations to shareholders or creditors, as set out in LFS article 90 part 4.

6) finance subject under resolution, to the extent of liabilities that were not written-off or converted while applying resolution by use of prive funds, as regulated by LFS article 77 part 5 and article 78.

Resolution institution makes decisions regarding use of Resultion Fund resources.