Saeima passes amendments to cap bank liquidators' pay

Saeima on March 1 passed in the final reading amendments to the Credit Institutions Law putting caps on the remuneration paid to bank liquidators and insolvency administrators.

Lawmakers supported Unity’s proposal to stipulate that the combined monthly remuneration of a liquidator and his assistant must not exceed €100,000.

The amendments to the Credit Institutions Law are intended to reduce the base used for the calculation of bank liquidators or insolvency administrators' pay. This base will be calculated as the difference between the sum total payable to the creditors and the easily recoverable assets of the to-be liquidated credit institution.

Depending on the amount repaid to the creditors, liquidators will be entitled to 2-5% of the recovered money.

The regulation will apply unless the creditors have reached an agreement with the liquidator on a different size of remuneration. The regulation would also apply to insolvency administrators.

The draft amendments were proposed at a time when it became clear that Latvia's ABLV Bank has to be liquidated and its liquidator will be able to make millions by easily selling off the bank's highly liquid assets.

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