The collapsed Snoras bank owns two properties in Latvia – its subsidiary Latvijas Krajbanka headquarters and a building in Old Riga.

Both of the buildings are expected to catch the eye of investors, as they are located in strategically advantageous parts of the city. However, the price of them will also play a great role, reports daily Dienas Bizness.

Real estate experts believe that the selling price will definitely be lower than the one paid for the Old Riga building last year – more than 11 million lats ($20.4m).

Construction costs of the former headquarters of Krajbanka (Jana Dalina Street 15) totalled about 7 million lats ($13m). Now the building houses auctions of the bank’s assets.

Whereas, the building in Old Riga (Pils Street 23) was purchased from SIA Pils 23 for a record-high amount – 11.24 million lats.

According to experts, investors will definitely be very interested in the two properties.

BNN already reported, Latvijas Krajbanka administrator, KPMG Baltics began paying back creditors on Monday, August 27, transferring 50 million dollars to the Guarantee Fund.

In accordance with the Bankruptcy Law, the Guarantee Fund is first in line on the list of creditors, which receives funds from the sale of the bank’s assets.

Next payments will go to bank employees, taxes, state and municipal budgets, as well as creditors, including depositors that had placed more than 100 000 EUR in the bank. Shareholders are in the very end of the list.

This kind of regulation of bankruptcy procedures and the mentioned order of creditors was set so that the Guarantee Fund would ensure financial stability and protect the interests of small depositors.

The administrator plans to perform payments to creditors from two to three times per year.

As reported, Riga District Court announced the beginning of Latvijas Krajbanka’s bankruptcy procedure on May 8. The verdict is not subject to appeal.

The bank’s administrator requested performing the procedure, because the commission decided that neither one of the proposed reorganization plans could be realized in practice.

Ref: 104.105.105.2549