Sorainen has advised the Estonian Guarantee Fund on a reusable credit line contract to be concluded with the Republic of Estonia as the lender.
According to Sorainen, the credit line has a withdrawal period of three years and a contract term of five years, with a maximum limit of EUR 720 million in 2023, EUR 750 million in 2024, and EUR 785 million in 2025. "The purpose of the deposit guarantee sub-fund is to pay compensation to the depositors in the event of a possible loss, e.g., insolvency of a credit institution," the firm informed.
"The Estonian Guarantee Fund is a legal person in public law founded under the Estonian Guarantee Fund Act on July 1, 2002," the firm reported. "The objective of the Estonian Guarantee Fund is to guarantee, under the conditions and to the extent provided by the law, protection of funds deposited by clients of credit institutions, clients of investment institutions, unit-holders of mandatory pension funds, and policyholders under insurance contracts for a mandatory funded pension, and accumulate funds for financing of the implementation of the crisis resolution tools and rights provided for in the Estonian Financial Crisis Prevention and Resolution Act, thereby increasing the reliability and stability of the Estonian financial sector."
The Sorainen team was led by Counsel Hetti Lump and included Associate Kamilla Alma Vilderson.
Sorainen did not reply to our inquiry on the matter.
