Dear Mr xxxx,
We, as Competent Person, are hereunder providing a high level update on the current financial situation with respect to the former Nemea Bank (“Nemea” or “the entity”).
Following the withdrawal of the entity's bank licence, the Depositor Compensation Scheme commenced the process of compensating the depositors, subject to a maximum of €100,000 per depositor. In this respect, we understand that the amount of €100,000 has already been paid into a third party bank account of your choice. The outstanding balance could potentially be settled from the entity's remaining assets upon the assets’ maturity or liquidation.
In the last few months, our role as Competent Person has focused on the recoverability of the loan book of the entity, which loan book represents the key residual asset of Nemea, with a view to maximizing, to the extent practicable, repayments of or recoveries from such loans. The loan book comprises a limited number of term loans to corporates and individuals, together with a portfolio of low value loans to individuals. We have instituted court proceedings in respect of a number of cases due to defaults, non-repayments or other causes, to secure the rights of the entity to recover from collateral or other sources. The situation remains difficult in respect of a number of exposures, particularly in view of the fact that Nemea’s customers were mainly Finnish. We are doing all efforts possible to recover the amounts due to the bank involving legal advisors in Malta and abroad. A number of impairment provisions have been recorded in the financial statements of the entity to reflect the amounts actually expected to be recovered, on a prudent basis. This doesn’t imply that the Competent Person will not pursue the recovery of amounts which have been provided for. We are also doing our utmost to recover the amounts attributable to a limited number of other assets or investments.
In synthesis, as the Competent Person in charge of the entity's assets, we are currently taking all the necessary steps to realise the maximum proceeds from the entity's assets and therefore maximise such eventual potential proceeds. You will understand that in such correspondence we cannot go into the details on the proceedings of each and every case, or each and every financial asset.
The liabilities of the entity are not variable anymore, subsequent to the intervention of the Depositor Compensation Scheme. The key liability of the entity remains the residual deposits placed with the bank, over and above the amounts covered by the Scheme, which liability remains unchanged.
At this point in time, the financial position of the entity remains precarious, with liabilities exceeding assets as at 31 August 2018.
The only expenditure currently being incurred by the entity comprises principally legal fees to secure recoveries from loans and fees payable to the competent person, primarily for work carried out in respect of the loan book.
At this stage, the role of the Competent Person is not perceived as one whereby we effect partial or any other distributions to depositors unless there are sufficient funds to repay all depositors in full. We are working on potential moves that might improve the situation for the residual depositors, but it is too premature to assess whether these moves will go through or otherwise.
In view of the above matters it is likely that any distributions to depositors, if any, will be effected by the liquidator of the entity, unless the matters referred to above materialise. It is the prerogative of the banking regulatory supervisor to appoint a liquidator for the entity, not that of the Competent Person. We can confirm that to date no liquidator has been appointed for the entity. Hence, any funds may be eventually distributed as part of the process of the entity's dissolution. As noted previously, the dissolution process has not yet started.
Kind regards,
Paul
Si alguien puede explicar, yo por lo que veo, esto está frio, con muchas trabas y pocas posibilidades de éxito, en mi caso son los intereses lo que pierdo, pero....
