Clifford Chance

Poland creates senior non-preferred debt

15 February 2019

Poland has created a new category of senior non-preferred debt by the Act of 17 January 2019 (the "Amendment Act") amending, among others, the Act of 10 June 2016 on the Bank Guarantee Fund, Deposit Guarantee Scheme and Resolution (the "BFG Act"). As from the date on which the Amendment Act will come into force, in the event of the insolvency of a credit institution subject to the resolution scheme ("institutions"), ordinary claims will be classified as either senior "preferred" claims or senior "non-preferred" claims, the latter having a lower ranking than the former. An ordinary claim will only be considered as "non-preferred" if it meets all the conditions established for such purposes under the Amendment Act.

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