Advance for SME clients with interest rate derivatives
- Products and services
SME clients with interest rate derivatives who are being handled by ABN AMRO’s Financial Restructuring & Recovery team and who are eligible for compensation under the Uniform Recovery Framework will receive an offer for an advance this summer. In addition, SME clients who fall under the Recovery Framework and who do not receive a final offer in 2017 will receive an offer for an advance in December 2017. In all of these cases, the advance will equal 80% of the expected ex-gratia payment (step 3 of the Recovery Framework).
We will offer clients being handled by Financial Restructuring & Recovery who we will be unable to inform about the outcome of the reassessment in 2017 an additional advance equalling the estimated total compensation (steps 1, 2 and 4 of the Recovery Framework). These clients will receive an additional offer for an advance in December 2017.
The advances do not apply to clients who have gone bankrupt, are currently involved in legal proceedings with the bank or with whom the relationship with the bank has been terminated.
As many offers as possible in 2017
ABN AMRO aims to make an offer to as many clients as possible in 2017. The bank expects to send the first offer letters to its SME clients in the third quarter. This is later than planned due to the lessons learned in the first few months of reassessment. ABN AMRO has therefore decided to offer clients the advances referred to above, as the bank wants to alleviate the uncertainty among clients regarding exactly when they will receive their individual offer.