Apply for a Subordinated Loan

What do you need to know before applying for a subordinated loan?

NB! Please familiarise yourself with the notion of a subordinated loan from the viewpoint of the Law of the Republic of Latvia.

  • According to a subordinated loan agreement, the bank becomes the owner of deposited funds for a certain period of time, and undertakes an obligation to return these funds to a depositor along with an interest as agreed by both parties.
  • A customer is not entitled to withdraw the loan early, except cases of liquidation of a credit institution; subordinated deposits are repayable after obligations to all other creditors have been met, but before the obligations to shareholders.
  • According to the Latvian legislation, the state guarantee scheme does not apply to subordinated loans.

If you are not a customer of Rietumu, you can become the one by opening a current account with the bank. You can obtain the detailed information on current account opening at the bank’s representative offices or by calling 24-h customer information service at +371 67025555.

Subordinated loan agreement