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Tuesday, February 18, 2025

Restructuring Getin Noble Bank. Court: decision issued in violation of the law

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The Provincial Administrative Court in Warsaw (WSA) issued a judgment stating that the decision to initiate forced restructuring of Getin Noble Bank (GNB) was issued in violation of law. The Bank Guarantee Fund (BFG) announced that it would start work on lodging a cassation appeal to the Supreme Administrative Court (NSA).

BFG had previously noted that it did not comment on the unlawful decision of the Provincial Administrative Court in Warsaw.

At the same time, the Fund emphasized that the judgment influences the validity of legal actions carried out on the basis of BFG's decision on forced restructuring. Therefore, the judgment has no influence on the situation of Velobank clients, which is an independent entity – BFG pointed out.

BFG on the restructuring of Getin Noble Bank

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According to the fund, the forced restructuring of Getin Bank carried out on the basis of the Act implementing the Polish legal order to the Polish legal order, allowed to protect all customer deposits in the amount of PLN 38.1 billion, in total with PLN 3.3 billion of deposits that could not be paid as part of the BFG guarantee in the event of bankruptcy.

BFG pointed out that it initiated forced restructuring of Getin Noble Bank, because all three premises that oblige the fund to take such action were met: the bank was threatened with bankruptcy, there were no premises indicating that possible actions would allow the threat to bankruptcy in a timely manner; And the initiation of forced restructuring was necessary in the public interest, understood in particular as the stability of the financial sector and limiting the involvement of public funds.

The process of compulsory restructuring of Getin Noble Bank SA began on September 30, 2022, after BFG made a decision to transfer part of GNB activities to the bridge institution, i.e. to Velobank. At the end of September 2022, BFG began forced restructuring of Getin Noble Bank. His activity on October 3 was transferred to the BFG bank, which is also owned by BFG, also a commercial bank protection system (Sobk), created by eight largest commercial banks operating in Poland. Sobk covered 49 percent shares created by the BFG SA Bank Fund, and the remaining 51 percent He had BFG.

Velobank and Deposits of Getin Noble Bank customers

Velobank was transferred, among others All deposits of Getin Noble Bank customers, as well as loans in PLN, while the transfer was excluded, denominated or indexed to foreign currencies.

On August 1, 2024, BFG sold Velobank for PLN 375 million. The buyer – promonted Holding 418 BV, indirectly belonging to the Cerberus Capital Management, LP, European Bank of Reconstruction and Development, and the International Finance Corporation – part of the World Bank Group has committed a bank to recapitalize the bank with the amount of PLN 687 million.



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