Ministry of Finance to pay compensation to holders of expropriated SNS securities and assets
The Ministry of Finance is to pay compensation to holders of SNS bonds, participation certificates and loans. Following the Supreme Court’s decision of 21 April 2023 to uphold the earlier ruling of the Enterprise Division of Amsterdam Court of Appeal on the amount of compensation payable, the Ministry is now set to proceed with the compensation payments.
Shareholders not eligible
The compensation will be payable to holders of subordinated bonds, certain participation certificates and subordinated loans expropriated as a consequence of the nationalisation of SNS REAAL and SNS Bank on 1 February 2013. According to the judgment, holders of expropriated SNS Bank and SNS REAAL shares are not eligible for compensation. The process of paying the compensation will begin on 15 May, within the statutory time limit of four weeks after the Supreme Court’s judgment.
Statutory entitlement to compensation
The nationalisation of SNS REAAL and SNS Bank on 1 February 2013 caused the securities and assets to lose their value. In such cases the Financial Supervision Act (Wet op het financieel toezicht) requires the holders of expropriated securities and assets to be compensated. In its judgment of 21 April 2023, the Supreme Court upheld an earlier ruling by the Enterprise Division of Amsterdam Court of Appeal that holders of subordinated bonds, certain participation certificates and loans were entitled to compensation of approximately €805 million plus statutory interest. The Ministry will now proceed to pay that compensation.
Call for entitled parties to come forward
The payment process will begin within four weeks after the date of the Supreme Court’s judgment. The Ministry calls on entitled parties who are eligible for the compensation to apply for compensation through the website www.compensationsns.nl. Applications can be submitted from 15 May 2023 onwards.