Official Translation

Official Translation Official Translation REPUBLIC OF LITHUANIA LAW ON THE RESTORATION OF SAVINGS OF THE POPULATION June 5, 1997. No VIII - 240 Vilnius ARTICLE 1. Purpose of Law This Law shall establish the restoration of the deposits of Republic of Lithuania citizens and of persons permanently residing in the Republic of Lithuania (further - population), expropriated by the former soviet occupation power, which had been kept in the state banks of Lithuania up to February 26, 1991 and also, other funds (further - savings), placed in deposit accounts and inventoried according to the procedure stipulated in parts 1, 2, 3 and 4 of Article 3 of this Law. ARTICLE 2. The Savings Being Restored and Other Funds 1. The following funds of the population shall be restored: 1) deposits, kept in state banks up to February 26, 1991, if the balances of these deposits have not decreased before May 1, 1992 and June 24, 1993; 2) deposits, which after February 26, 1991 had been withdrawn and deposited no later than the following business day, into the same depositors’ (children’s, adoptive children’s, parents’ adoptive parents’, spouses’, brothers,’ sisters’, grandparents”, Grandchildren’s, daughters’-in-law, sons’-in-law, brothers’-in-law) accounts at that same or another banking institution (not in excess of the sum existent there on February 26, 1991) and has not decreased before May 1, 1992 and June 24, 1993; 3) insurance contract payments, saved at a State Insurance institution prior to February 26, 1991 and not paid out to the population by June 24, 1993. Insurance contract payments which have not been reclaimed by those insured, shall not be restored in accordance with discontinued insurance contracts of additional pensions; 4) payments of insurance contracts, saved at a State Insurance institution prior to February 26, 1991 and transferred by the insurance company after that date prior to June 24, 1993, upon reaching the insurance contract due date or, upon the death of the insured, to state bank accounts and not decreased until May 1, 1992 and prior to June 24, 1993. 5) the bonds issued in 1982, by the former USSR, have been registered in 1994 by the Savings Bank of Lithuania Public Company (further - AB). 2. Other funds of the population which are being restored: 1) compensation sums of returnable property, allotted to former political prisoners, deportees and individuals like them, if those sums had been transferred to the lists of accounts of the persons indicated, in the state banks; 2) the compensations for time, spent in places of confinement, paid out to rehabilitated persons, arrested or sentenced, those arrested and sentenced from June 15, 1945 to June 15, 1981, if these sums had been transferred to the accounts of the indicated persons or their heirs, also, compensations had been paid to persons who had been deported during World War II, for forced labour, ghettos and other places of confinement for the time spent there and to persons, who during 1951-1952, had been illegally relocated from certain areas in Lithuania to others, if these sums had been transferred to the deposit accounts of the persons indicated or their heirs, and also the balances of their pension sums, paid out to rehabilitated political prisoners, deportees and resistance participants according to the Government Decree No. 482 “On Increasing Work Compensation, Payments of Pensions and Other Social Payments, Upon Increases in the Cost of Goods,“ dated November 23, 1991, and transferred to the saving accounts of the persons indicated; 3) one-time compensations, paid in accordance with the procedure, established by laws, to persons, who sustained injuries while fighting for the independence of the Republic of Lithuania, as a result of the aggression perpetrated 11-13 January, 1991 and subsequent events, if these sums had been transferred to the bank accounts of the persons indicated, in the state banks; 4) the funds obtained from the sales to the state of livestock products and transferred to separate deposit accounts or separate settlement accounts at the Savings Bank of Lithuania or the Agricultural Bank of Lithuania institutions in accordance with the Government Decree No. 67, “On Encouraging the Population to Sell Livestock Products to the State During the Winter and Spring Months,” dated January 31, 1992. 3. The deposits shall be restored without regard as to whether the deposit funds have been withdrawn after June 24, 1993. The deposits, in state banks which have not been recalculated into litas, in 1993, according to the legal acts in effect at that time, shall not be restored. ARTICLE 3. The Restoration of Savings 1. If on May 1, 1992, the balance of the deposits indicated in part 1 of Article 2 of this Law, was less than what it was, on February 26, 1991, but did not change until June 24, 1993, the savings of the population shall be restored according to the savings balance of May 1, 1992. If the balance of the savings on June 24, 1993, was less than that of February 26, 1992 and May 1, the savings of the population shall be restored according to the savings balance of June 24, 1993. The stipulated population savings shall be restored according to a ratio of 1 litas to 1 rouble (talon), while the sum shall not exceed 6,000 lt., per population member. 2. If the sums of money indicated in items 1-3 of part 2 of Article 2 of this Law, had been transferred to deposit accounts by May 1, 1992, these funds shall be restored according to a ratio of 1 litas to 1 earlier-held rouble (talon), but if this has transpired after May 1, 1992, these funds shall be restored taking into account the indexing that has been performed. The Government shall establish the procedure and conditions of the restoration of the funds. 3. The funds indicated in item 4 of part 2, of Article 2 of this Law shall be restored according to the ratio of 1 litas to 20 roubles (talons). 4. The general sum of deposits being restored to the population and other funds placed in deposit accounts shall be equal to the sum of the aforementioned population savings and other funds deposited into deposit accounts, restored according to the procedure indicated in parts 1, 2 and 3 of Article 3. If the funds described in part 2 of Article 2 have been deposited into the population’s deposit accounts, prior to February 26, 1991, the balance of the savings remaining to February 26, 1991, shall be established from the factual balance of savings, in existence on February 26, 1991, and by subtracting the sums of money indicated in items 1-3 of part 2 of Article 2, transferred to the population deposit accounts until February 26, 1991. 5. When the Russian Federation, the successor to USSR rights and obligations, shall return the deposits of the Lithuanian population, that had been expropriated by the former soviet occupation power and used up through the former Central Bank of the USSR, the restored sum of the indicated savings shall be appropriately increased, according to the decision by the Government of the Republic of Lithuania. 6. The funds, earmarked for restoration of the population’s savings, shall be held in a special Savings Restoration Account of the Ministry of Finance opened at the AB Savings Bank of Lithuania. 7. Population savings shall be restored by December 31,1997, by opening for population members restored savings accounts (further - accounts to be restored) AB Savings Bank of Lithuania. To this date, the expenses incurred in the opening of accounts to be restored of the Savings Bank of Lithuania, shall be covered by the sources indicated in Article 4 of this Law. 8. The population shall commence free disposition of the calculated restored savings held in the accounts to be restored, in accordance with the sequence indicated in part 3 of Article 6 of this Law, from the date stipulated by the Government. ARTICLE 4. Sources of Funding For Restoration of Savings 1. The main funding source for the restoration of savings shall be all of the state property slated for privatisation, which shall be transferred to the Fund For the Restoration of State Property and Population Savings. No less than 2/3 of the funds obtained from the sale of state property according to the procedure established by the Law on the Privatisation of State and Municipal Property, must be transferred to the Savings Restoration Account. Up to 1/3 of the funds obtained in accordance with the privatisation laws, from the sale of state property (enterprise shares), shall be designated to finance the country’s economic programmes. 2. In order that the population might be able to use the savings held in the accounts being restored, before the sale of the corresponding state property and (

1. or)the funds will be received for it, the debt liabilities (borrowed funds) of the State Property and the Population Savings Restoration Fund may be accumulated for the disposition of these funds, which must be secured by a concrete property designated to be privatised (sold) or a privatisation transaction. To this end, the State Property and Population Savings Restoration Fund shall have the right to sign a loan agreement, in accordance with the procedure established by the Government with the AB Savings Bank of Lithuania and other Lithuanian and foreign banks or financial institutions with regard to a specific loan. The sum of such a loan may not be below 50 per cent of the market value of the enterprise to be privatised, being mortgaged (package of shares), set in accordance with a certificate of the property assessor, or the cost of the sale of another property, while the general sum of the liability, according to all of the loan agreement, excepting loan agreements, secured by privatisation transactions, whereby it may not be in excess of 300 mil. lt., at any given time. 3. Other sources of savings restoration: 1) The monies from the Fund of Savings Restoration and Compensation, created by the Seimas Resolution, dated January 1, 1998, “On the Confirmation of the Provision Restoration and Compensation of the Savings Fund,” shall be accumulated up to January 1, 1998; 2) in accordance with Government decrees or other decisions, as funds earmarked as credit resources from the Republic Privatisation Fund, along with the added interest; 3) other funds, transferred from the Fund For the Restoration of the State Property and Savings of the Population; 4) deposits of the Lithuanian population, returned by the Russian Federation, that had been expropriated by the former soviet occupation power and used up through the former USSR Central Savings Bank. ARTICLE 5. Restored Savings Accounts A restored account shall be opened for every member of the population (further- depositor), who is having his savings restored at the AB Savings Bank of Lithuania, in accordance with this Law. A restored account shall be opened upon receipt of a depositor’s (in the event of the death of a depositor, his heir’
2. s)written request, which he must submit to the AB Savings Bank of Lithuania prior to December 31, 1997. The restored savings shall be transferred from other state banks to the AB Savings Bank of Lithuania Company, in accordance with the procedure established by the Government. The AB Savings Bank of Lithuania shall provide services with regard to depositors’ savings accounts being restored according to an agreement with the Ministry of Finance. 2. A depositor may only have one account to be restored and only within one institution of the AB Savings Bank of Lithuania, of his own choosing. This account shall include all of the savings being restored in his name, which shall be accounted for in the off-balance sheets, according to the procedure established by the Government and the Bank of Lithuania. 3. A restored account shall include a record of the sum of the depositor’s savings being restored (recalculated according to the ratio and maximum amount of savings being restored per single population member, to parts 1-3 of Article 3 of this Law), after having deducted the savings compensation sums in state banks, recalculated into litas in 1993, in accordance with the legal acts, in effect at that time, paid to the depositor in cash or transferred to the accounts designated by him, and the sums transferred after June 24, 1993, into the off-balance portion of the investment account in accordance with Government decrees on compensation of the savings of the population, in effect until this Law. 4. The restored portion of the savings (deposits), which can be freely handled by the depositor, shall be transferred to the deposit account indicated in the depositor’s application. If the depositor had not indicated, what account the restored portion of the savings should be transferred to, it shall be transferred to the savings deposit account opened in this depositor’s name, which shall be further managed by the Savings Bank of Lithuania in accordance with the established procedure. 5. The funds held in the restored accounts of a deceased depositor shall be inherited according to the procedure established by laws. ARTICLE 6. The Disposition of Restored Savings 1. The Government shall stipulate the amount and start of the disposition of savings restored according to this Law, for depositors who have acquired accounts to be restored, taking into consideration: 1) the sequence indicated in part 3 of this Article, however the disposition may not take place prior to January 1, 1998; 2) the funds being obtained, in accordance with the Law on the Privatisation of State and Municipal Property, as result of the sale of state property or other sources established in this law, size and not in excess of the sum necessary for free disposition of the deposits collected in the Special Savings Restoration Account. 2. The funds slated for disposition shall be transferred to the depositor’s savings account, if the depositor does not indicate in writing another deposit account, and correspondingly decreased restored savings, which are calculated in the off-balance account of the bank, balance. 3. Free disposition of the restored savings may commence in the following sequential procedure: 1) those who have Group I Disability and families who are raising a disabled child; persons aged 85 or over; rehabilitated political prisoners and deportees, ghetto prisoners, persons who have become victims, as result of the aggression perpetrated during 11-13 January and the events which followed, and other persons who have become the victims of the struggles for Lithuania’s freedom; 2) persons aged 70 or over, families with many children who are raising four and more children and also persons with Group II Disability; 3) pensioners who have reached age 60 or over and 4) other depositors. 4. the procedure established in part 3 of this Article shall not be applied and free disposition of restored funds shall be permitted in the following instances: 1) in instances of the death of a depositor (after January 1,1998) and 2) in instances of fire or other natural disaster (after January 1, 1998). If the property had been insured to an extent, which does not suffice for the insurance payment to cover the damages. 5. Upon the recommendation of the municipal government heads (mayors) the Finance Ministry shall, from January 1, 1998, adopt monthly decisions concerning the free disposition of restored savings, in instances stipulated in part 4 of this Article, using the funds, according to the special procedure designated by the Government, which are being held in the reserve of the Savings Restoration Account at the Ministry of Finance. 6. The Government can not adopt any decisions on the disposition of the funds in accounts being restored, if insufficient funds have been accumulated in the Savings Restoration Fund from the sources indicated in Article 4 of this Law. ARTICLE 7. Final Provisions 1. Until December 31, 1997, the savings of the population shall be compensated in accordance with the procedure established by the December 15, 1993 Seimas Resolution “On Indexing of the Savings of the Population,” and the corresponding Government decrees. 2. From January 1, 1998, to consider the Seimas Resolution “On the Indexing of Savings of the Population,” and also the Seimas Resolution, “On Restoration of Savings and Approval of the Statutes of the Compensation Fund,” no longer valid. 3. From the day of coming into effect of this Law to consider the Law “On Compensation of the Savings of the Population,” no longer valid. ARTICLE 8. Proposals to the Government and the Bank of Lithuania 1. By July 1, 1997, the Government and the Bank of Lithuania shall prepare and approve the procedure for Restored Savings Accounting. 2. By September 1, 1997, the Government shall prepare and approve legal acts, pertaining to the implementation of the Law On the Restoration of the Savings of the Population. I promulgate this law passed by the Seimas of the Republic of Lithuania PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS