Harju County Court in Estonia declared the savings and loan association Kodumaa Kapital bankrupt in mid-September. ERR News reports.
Payments to depositors suspended
At the beginning of the year, Kodumaa Kapital stopped paying funds to depositors. As Ärileht reported, the association explained this by amendments to the law on savings and loan associations.
In February, depositors received a letter proposing that they exchange their claims for units in the Kodumaa Fund. The fund was presented as a mechanism for protecting depositors’ interests, intended to ensure the growth of the association members’ funds and avoid the cessation of…