Advance for SME clients with interest rate derivatives

News item -

In the next few weeks, a large group of clients will receive an offer for an advance on the expected compensation under the Uniform Recovery Framework for Interest Rate Derivatives for SMEs (Recovery Framework). The advance will equal the expected ex-gratia payment.

As the outcome of the reassessment is taking longer than expected, we are offering these clients an advance. The advance is being offered to clients with interest rate derivatives who are eligible for reassessment according to the criteria of the Recovery Framework and who we will be unable to inform of an outcome in 2017.

We will not be offering an advance to clients who have gone bankrupt and/or are currently involved in legal proceedings with the bank. If the client accepts the offer, the amount will be either paid out or set off against any outstanding debts.

If the client accepts the advance, the advance will be transferred within four to six weeks. As the letters in which the advance is offered are being sent out in the next few weeks, clients could receive the money this year.

This past August, clients being handled by ABN AMRO’s Financial Restructuring & Recovery team received an offer for an advance. By early October, around 70% of these clients had accepted the offer. The first few hundred clients have already received the money.

ABN AMRO is offering an advance in three situations. More information on the advance and the terms and conditions of the offer is available in the news article of 30 June 2017. By offering advances, virtually all clients in scope of the Recovery Framework could receive all or part of the money they are entitled to under the Framework this year. Clients may use the advance at their own discretion. Should a client decide at a later date not to agree to the compensation proposal, or if the advance turns out to exceed the amount to which the client is entitled, ABN AMRO and the client will resolve the matter in consultation with each other.

Share

Join the discussion

ABN AMRO would like to know your opinion, so below this article you can react to this article via Disqus. By doing so, you agree to the conditions for reacting to articles on our website.

Related news items

More news about ABN AMRO