The Resolution Fund (RF) is financed by entities specified in Article 1(2)(3) of the Law on Financial Sustainability of the Republic of Lithuania that fall outside the scope of Regulation (EU) No. 806/2014, as defined in Article 2 of that Regulation, as well as by entities licensed in third countries that operate in the Republic of Lithuania in accordance with the procedure established by the Law on Insurance of Deposits and Liabilities to Investors and applicable European Union legislation.
Other entities referred to in Article 1(2) of the Law on Financial Sustainability contribute to the Single Resolution Fund in accordance with Regulation (EU) No. 806/2014 and its implementing legislation.
The Resolution Fund may be used where, in the course of applying resolution tools and exercising resolution powers, it is necessary to:
- guarantee the assets or liabilities of an institution under resolution, its asset management vehicle, bridge institution, or an acquirer under the sale of business tool;
- provide loans to an institution under resolution, its asset management vehicle, bridge institution, or an acquirer under the sale of business tool;
- purchase assets of an institution under resolution;
- finance a bridge institution, an asset management vehicle, or an acquirer under the sale of business tool in accordance with Article 78 of the Law on Financial Sustainability;
- pay compensation to shareholders or creditors in accordance with Article 90(4) of the Law on Financial Sustainability;
- contribute to the financing of an institution under resolution to the extent of liabilities that have not been written down or converted when applying the bail-in tool, as provided for in Articles 77(5) and 78 of the Law on Financial Sustainability.
Decisions regarding the use of Resolution Fund resources are taken by the resolution authority.
