Lietuviškai

                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    

                           R U L I N G                           

         On the compliance of the provision "by applying         
       coefficient 10" of the 23 July 1993 Resolution No.        
       562 of the Government of the Republic of Lithuania        
          "On indexation of people's savings" with the           
            Constitution of the Republic of Lithuania            

                      26 June 1996, Vilnius                      

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  justices  of the Constitutional Court Egidijus
Jarašiūnas,   Kęstutis  Lapinskas,  Zigmas  Levickis,  Augustinas
Normantas,  Vladas  Pavilonis,  Jonas Prapiestis, Pranas Vytautas
Rasimavičius, Teodora Staugaitienė, and Juozas Žilys,
     the secretary of the hearing - Daiva Pitrėnaitė,
     the  petitioner  -  Gediminas  Vagnorius and Stasys Vėlyvis,
an  Associate  Professor, PhD, both representatives of a group of
the Seimas' members,
     the   party   concerned  -  Lina  Gasiūnaitė,  Head  of  the
Division  of  Financial  Institutions of the Ministry of Finance,
and  Algirdas  Cicėnas,  Deputy  Director of the Legal Department
of   the   Ministry  of  Justice,  both  representatives  of  the
Government of the Republic of Lithuania,
     pursuant  to  Part  1  of Article 102 of the Constitution of
the  Republic  of Lithuania and Part 1 of Article 1 of the Law of
the  Republic  of  Lithuania  on  Constitutional  Court,  in  its
public  hearing  on  30  May  1996 conducted the investigation of
Case  No.  6/95 subsequent to the petition submitted to the Court
by  the  petitioner - a group of the Seimas' members - requesting
to  investigate  if the provision "by applying coefficient 10" of
the  23  July  1993  Resolution  No. 562 of the Government of the
Republic  of  Lithuania "On indexation of people's savings" is in
compliance  with  Parts 1 and 3 of Article 23 of the Constitution
of the Republic of Lithuania.

     The Constitutional Court
                        has established:                         
  
                                I                                
     The  Government  passed Resolution No. 562 "On indexation of
people's  savings"  on  23 July 1993 (Official Gazette "Valstybės
Žinios"  No.  32-756,  No.  65-1236, 1993; No. 76-1438, 1994; No.
3-41,  1995;  hereinafter  in  the  ruling  referred  to  as  the
disputed   Resolution   of   the   Government),  item  1  whereof
establishes  that  state  banks  and State Insurance Office shall
index  by  applying coefficient 10 the savings of citizens of the
Republic   of   Lithuania,  as  well  as  those  of  persons  who
permanently  live  in  the  Republic  of  Lithuania, and those of
rehabilitated  persons  who  were deported from Lithuania and now
live abroad.
     When  the  case  was  being  prepared  to the hearing of the
Constitutional   Court,   as   well   as   during   the  judicial
investigation,  the  representatives  of  the petitioner grounded
their request with the following arguments:
     1.  It  is  established  by  the  disputed Resolution of the
Government  that  the  savings  and  insurance  payments  of  the
people   of   Lithuania  which  had  been  accumulated  until  26
February  1991  shall  be indexed by applying coefficient 10, and
it  means  that  people's  deposits  with  their initial (actual)
value  are,  in  essence,  confiscated,  i.e.,  private  property
which   was  accumulated  in  the  form  of  deposits  is  seized
practically gratuitously.
     2.  There  were more than 7 milliard roubles of the deposits
of  the  people  of  Lithuania  accumulated  in savings banks and
State  insurance  offices during the period of Soviet occupation.
The  savings  banks  did  not  dispose  of  these  savings of the
people,  they  merely  received  deposits  and  controlled  their
accounting.  Soviet  government  would  take people's deposits in
centralised  manner  as  budgetary incomes and would utilise them
through  the  budget  for  the  purpose  of  various needs of the
State.
     The   representatives  of  the  petitioner  noted  that  the
alienated  means  did  not  disappear:  they  were  invested into
various  branches  of  economy,  thus,  in  Lithuania,  about one
third  of  state  property was created which, in essence, belongs
to  individual  persons,  i.e.,  to  all  people,  and not to the
State  because  the  means  of  the  aforesaid persons which were
accumulated  in  savings  banks  in  the  form  of  deposits were
materialised in state property that was created from them.
     3.  The  representatives  of  the petitioner maintained that
inflation  did  not destroy people's deposits because deposits as
credit  resources  in  fact  existed  neither in 1990, nor later:
they  were  converted  into the property of state enterprises and
organisations.  Since  there  were  not  any people's deposits in
the  Savings  Bank (they had been utilised by Soviet government),
thus,  now  it  is  possible  to  compensate  them  by  selling a
corresponding  share  of state property, by indexing the deposits
with  the  inflation  coefficient,  and thereby the initial value
of the deposits could be restored.
     On   the   grounds   of   the  data  of  the  Department  of
Statistics,  the  representatives  of  the  petitioner  indicated
that  the  inflation  coefficient  was  113.46% from 1 March 1991
until  1  July  1993,  therefore  they  made  a  conclusion  that
people's  savings  in the form of deposits and insurance payments
which  were  indicated  in  item  1 of the disputed Resolution of
the   Government   should   have   been   indexed   "by  applying
coefficient 113.46, and not coefficient 10".
     4.  The  representatives of the petitioner pointed out that,
according  to  Articles  109  and  1091  of the Civil Code of the
Republic  of  Lithuania,  people's deposits and other means which
could  be  identified  with  them and which are held in banks and
other  credit  offices  shall belong to these people by the right
of  private  ownership.  Besides,  it is established in Part 5 of
Article  471  of  the  said  code  that  "state  shall  guarantee
security  and  payment  of the means of natural persons which are
held  in  the  accounts  of  state,  state-stock  or  other state
credit offices on the first demand of the person".
     The  decisions  of  the Seimas and the Government also point
out  that  the  possessions  of the State guarantee that people's
deposits will not be lost.
     5.  The  representatives  of  the petitioner, on the grounds
of  the  provisions  "property shall be inviolable" and "property
may  only  be  seized  for  the needs of society according to the
procedure  established  by law and must be adequately compensated
for"  of  Article  23  of  the Constitution, indicated that these
provisions  are  violated  by  the  disputed  Resolution  of  the
Government  as:  1)  by not returning the deposits to people, the
constitutional   principle   of   inviolability  of  property  is
violated;  2)  the  savings are seized even though there exist no
grounds  indicated  in Article 471 of the Civil Code to do so; 3)
the  disputed  Resolution of the Government does not indicate for
what  needs  of  society  people's  savings  are  seized;  4) the
provision  "must  be  adequately  compensated for" is violated as
90% of people's deposits are seized at no cost.
     6.  The  representatives  of  the  petitioner  alleged: "The
Government   had   (and  has  now)  the  possibility  to  restore
people's  savings  by  means  of  the existing state property and
had  to  index  people's savings according to coefficients" which
correspond   the   officially   stated   inflation  indices.  The
representatives  of  the  petitioner indicated that, according to
the  data  of  the  Department  of  Statistics, on 1 January 1994
there  was  non-privatised  property  for  1.83  milliard  litas,
whereas  if  this  property  were  indexed  by  coefficient 10 as
established  in  the  disputed  Resolution of the Government, its
value  would  be  18.3  milliard  litas. Approximately 8 milliard
litas are needed to index the deposits in their actual value.
     In  the  opinion  of  the representatives of the petitioner,
there  exists  non-privatised  property  of  enterprises for 10.5
milliard  litas,  i.e. this is more than needed to compensate the
deposits  in  their  actual  value.  Besides, they noted that the
indexation  coefficients  established  in the disputed Resolution
of  the  Government are several times lower than they ought to be
pursuant  to  the  actual  index  of  prices,  therefore  if  the
existing  non-privatised  state  property  were  indexed  fairly,
i.e.,   according   to  the  indices  stated  officially  by  the
Department   of  Statistics,  there  would  be  much  more  state
property   than   required   to  compensate  people's  devaluated
deposits in their actual value.
  
                               II                                
     The   representatives   of   the   party   concerned  -  the
Government  -  presented the following counter-arguments when the
case  was  being  prepared  for the Constitutional Court hearing,
as well as during the judicial investigation.
     1.  The  disputed  Resolution  of  the  Government  to index
people's  deposits  accumulated  until  26 February 1991 in state
banks,   as  well  as  their  insurance  payments  in  the  State
Insurance  Office,  by applying coefficient 10 was adopted taking
account  of  actual  financial  possibilities  to  accumulate the
required  means  to  pay  the  compensations  in  cash but not in
state  property.  It  was  established by the calculations of the
Savings  Bank  of  Lithuania, the Lithuanian Bank of Agriculture,
the  State  Commercial  Bank  and the State Insurance Office that
the  total  sum  of  people's  deposits and insurance payments by
applying  coefficient  10 is 539.8 million litas and that it must
be paid during the period of 11 years.
     The  Seimas  by  its  15  December 1993 Resolution No. 1-338
"On   indexation   of   people's   savings"   (Official   Gazette
"Valstybės  Žinios",  No.  71-1329, 1993) approved of coefficient
10  which  was  established  in  the  disputed  Resolution of the
Government  and  recognised that the savings, the added interests
and  calculated  by  the  established  manner  compensations  for
savings  are  the  internal  loan of the State of the Republic of
Lithuania  to  people.  Moreover, this Resolution recommended the
Government   to   establish   the   Fund   of   Restoration   and
Compensation  of  Savings  in which means would be accumulated to
repay the established compensations.
     2.  The  Government  by  its 21 February 1994 Resolution No.
34  "On  the  restoration  of  people's  savings,  as  well as on
payments  of  compensation  in 1994" (Official Gazette "Valstybės
Žinios",  No.  7-115,  1994)  established the Fund of Restoration
and   Compensation   of  Savings  the  regulations  whereof  were
approved  by  the  Seimas by its 26 April 1994 Resolution "On the
approval  of  the  regulations  of  the  Fund  of Restoration and
Compensation  of  Savings"  (Official  Gazette "Valstybės Žinios"
No.  33-589,  1994). When implementing the aforesaid resolutions,
35.78  million  litas  were  transferred  from  the said fund for
compensation  payments  until 17 July 1995, whereas 163.5 million
litas  were  assigned  to  pay  compensations  for  the  years of
1993-1994.
     3.  The  representatives  of the party concerned refuted the
allegation  of  the  representatives of the petitioner that about
one  third  of  state  property  was  created  out  of the seized
savings  of  people.  In their opinion, such an allegation is not
grounded  on  any objective calculations because it is impossible
to  do  so.  As  it  is  known,  people's  savings  were  used in
centralised  manner  as budget income to finance various projects
in  the  former  republics  of  the Soviet Union. Therefore it is
impossible  to  establish  what  objects and in what republics of
the  former  Soviet  Union were built for the Lithuanian people's
seized savings accumulated in the savings banks.
     4.  The  representatives  of the party concerned pointed out
that  the  Government by its 19 April 1995 Resolution No. 554 "On
the  internal  loan  of  the  State  of Lithuania, as well as the
share  of  state  stock  capital  in the Lithuanian Savings Bank"
(Official   Gazette   "Valstybės   Žinios",   No.  34-843,  1995)
commissioned  the  Ministry  of Finance to sign an agreement with
the  Savings  Bank  concerning  the internal loan of the State of
Lithuania  which  appeared  due  to  the  seized  savings  by the
Central  Bank  of  the  former  USSR  as well as the necessity to
return  the  calculated  and  charged  to accounts interests. The
agreement  between  the  Government  and  the  Savings  Bank  was
signed on 15 May 1995.
     In   the   opinion  of  the  representatives  of  the  party
concerned,  not  only the devalued savings of depositors but also
those  of  all  entities  of  economy, as well as other property,
should  be  compensated  due  to inflation. The means accumulated
in  the  Savings  Bank  until 26 January 1991 were in fact seized
by  the  former Soviet Union and, until now, were not returned to
Lithuania.  The  agreement  regarding the returning of the seized
savings  of  people  has  not been signed with Russian Federation
yet.

     The Constitutional Court
                           holds that:                           
  
     1.1.  On  11 March 1990, the Supreme Council of the Republic
of  Lithuania  passed  the  Law "On the Provisional Principal Law
of  the  Republic  of  Lithuania".  It  confirmed the Provisional
Principal  Law  of  the Republic of Lithuania by Article 2 of the
said  law,  whereas  by  Article 3 of the said law it established
that  such  laws  and  other  legal  acts which had been in force
until  then  shall  be  valid  in the Republic of Lithuania which
are  in  compliance  with  the  Provisional  Principal Law of the
Republic  of  Lithuania.  Thus,  upon  the  reinstatement  of the
Independent  State  of  Lithuania,  for  some time laws which had
been  in  force until then, among them those regulating the legal
status  of  people's  savings in savings banks, were valid in the
legal system of Lithuania.
     It   is   established  in  Article  93  of  the  Provisional
Principal  Law  of  the  Republic  of  Lithuania  that  the  "the
Government  shall  implement  executive  power in the Republic of
Lithuania",  whereas  Article  100  provides that the composition
of  the  Government,  its jurisdiction and principles of activity
shall  be  established  by the Law on the Government. The Supreme
Council  passed  the  Law  on  the  Government of the Republic of
Lithuania   on   22   March  1990  (Official  Gazette  "Valstybės
Žinios",  No.  11-330,  1990;  hereinafter in the ruling referred
to  as  the  Law  on the Government). It is established in item 1
of  Article  2  of  the  said  law that the Government shall take
concern  for  "preservation  and  augmentation of the property of
the   Republic,   guarantee  all  property  subjects  freedom  of
economic  activity,  the  variety  of  property forms, as well as
their  equality",  whereas  in  Article  15 it is stipulated that
"pursuant   to   its  jurisdiction,  the  Government  shall  take
decisions   regarding  implementation  of  state  policy  in  the
spheres of money circulation and money".
     1.2.  During  the  period  of  Soviet  occupation,  people's
savings  in  the  form  of deposits were accumulated in the state
labour  savings  banks  of  the  USSR  (hereinafter in the ruling
referred   to   as   the   savings   banks).  The  savings  banks
constituted  part  of  a  unified,  centralised,  Union system of
credit  offices  which  was  subordinate to the State Bank of the
USSR.  The  activity  of  savings banks was regulated by the USSR
laws,   substatutory   normative   legal   acts,  directions  and
instructions   of  the  State  Bank  of  the  USSR,  as  well  as
regulations of savings banks.
     The  relations  which  appeared  between  savings  banks and
people  due  to  the  held  deposits  and  the procedure of their
utilisation  were  regulated  by "The Regulations of State Labour
Savings  Banks  of  the USSR" (hereinafter in the ruling referred
to  as  the  Regulations)  that were approved by the 11 July 1977
Resolution  No.  623  of the Soviet of Ministers of the USSR. The
Regulations  indicated  that  one  of  the main objectives of the
savings  banks  is  to  provide  people  with  an  opportunity to
preserve  and  accumulate  savings  in  the savings banks, and to
utilise  the  savings in the interests of economy. The savings of
people  of  Lithuania  which  had been accumulated in the savings
banks   and   other   credit  offices  would  be  transferred  in
centralised manner to the budget of the Soviet Union.
     It  was  established  in  item 5 of the Regulations that the
security  and  privacy of savings or other valuable items as well
as  their  payment  on the first demand of the depositor shall be
guaranteed  by  the  state. It was provided for in item 18 of the
said  Regulations  that  the depositor was entitled to dispose of
his deposit.
     2.  Upon  the  reinstatement  of  the  Independent  State of
Lithuania,  the  Soviet  Union undertook military, political, and
economic  actions  against  Lithuania. Among them, actual seizure
of  savings  of people of Lithuania which were accumulated in the
savings  banks  was  used  as  means  of  economic  and financial
pressure.
     Under  such  a  situation,  on 28 April 1990, the Government
adopted   Resolution   No.   133   "Concerning  the  measures  to
stabilise   the   activity  of  Lithuanian  economy  as  well  as
provision  to  people  under the situation of economic blockade",
as  well  as Resolution No. 134 "Regarding anti-blockade measures
to  regulate  money  circulation and to manage account settling".
These   resolutions   attempted  to  ensure  the  functioning  of
national  economy  by  the  foreseen economic measures. Item 1 of
Resolution   No.  134  commissioned  banks  of  the  Republic  of
Lithuania,  self-government  bodies  of  cities and districts, to
induce,   in   every  way  possible,  concentration  of  people's
savings  into  deposits  in the offices of the Lithuanian Savings
Bank,  as  well  as those of other banks. It was established that
the  Republic  of  Lithuania  guarantees  with  its property that
people's  deposits  will  not be lost. That corresponded the norm
of   Article  471  of  the  Civil  Code  that  "the  State  shall
guarantee  privacy,  security  and  payment  of  deposits  on the
first  demand  of  the depositor". This norm is valid at present,
too.
     The  guaranty  of  the Government that "deposits will not be
lost",  concerned  not  only  the deposits which were transferred
to  the  Savings  Bank  or other banks' offices already after the
28  April  1990  Resolution  No.  134  had  been adopted but also
those  which  had  been  put  into  the  savings banks during the
period  of  occupation  and  which  could  not  be  taken back by
people  as  in  fact  the  Soviet  government seized them. Such a
commitment  was  confirmed  by  the  28 March 1991 Resolution No.
106  of  the  Government  "On  protection of people's savings, as
well  as  insurance  payments,  from devaluation related with the
rise  of  prices  on  this  occasion".  Item 1 of this Resolution
prescribed:  "50%  of  deposits'  value  shall  be compensated to
people  of  the  Republic  of  Lithuania provided that the sum of
5000  roubles  shall  not be exceeded for one person, whereas the
sum  up  to  7000  roubles  shall  not  be  exceeded  for  former
political  prisoners  and  deportees."  In  like manner, and with
the  same  sums,  the  devaluation  of saved payments by life and
pension  insurance  was compensated. The devaluation of deposits,
as  well  as  that of payments of life and pension insurance, was
compensated  according  to  the  situation of 26 February 1991 by
allocating  corresponding  compensation  to acquire some of state
property subject to privatisation.
     The  fact  that  people's  deposits,  accumulated  until  26
February  1991  and  after,  would  not  be lost and be exchanged
into  the  national  currency  on  favourable conditions was also
confirmed  by  the 31 January 1992 Resolution No. 67 "On inducing
people  to  sell  farm  products  to  the State during winter and
spring  months".  It  was established in item 2 of Part 1 of this
Resolution  that  a favourable rate of exchange into the national
currency  shall  be  applied to the means transferred either into
individual  deposit  or individual farmers' clearing accounts (by
equating   these  means  to  the  inventoried  26  February  1991
deposits  with  the  rate  1  to  5 according to the prices' rise
index).
     It  should  be  noted that in the aforementioned resolutions
the   commitment  of  the  Government  is  expressed  in  general
statements  ('the  deposits will not be lost", "the deposits will
not  be  lost  and  be  exchanged  into  the national currency on
favourable   conditions",   etc.)   but  it  was  not  indicated,
however,  on  the  grounds  of  what particular criteria, on what
amount,  by  what  manner  and  during  what time period people's
deposits   accumulated  in  the  Savings  Bank  or  other  credit
offices will be compensated.
     On  5  November  1991, the Supreme Council passed the Law on
Issuing  the  Money  of  the  Republic  of  Lithuania  Part  3 of
Article   3  whereof  stipulated  that  "the  Government  of  the
Republic  of  Lithuania, until the complete withdrawal of coupons
from  circulation,  shall  establish  the amount and procedure of
the  compensation  of  the  devalued  savings of people possessed
until  26  February  1991  and  held  in  the  Lithuanian Savings
Bank".  Thus  this  law  once  again  confirmed  the right of the
Government  to  establish the amount of the devalued deposits and
the  procedure  of  their  payment  (Official  Gazette "Valstybės
Žinios", No. 33-896, 1991; No. 12-297, No. 27-622, 1993).
     From  the  mentioned  above,  as  well  as  pursuant  to the
Provisional  Principal  Law of the Republic of Lithuania, the Law
on  the  Government  of  the  Republic  of  Lithuania (adopted in
1990),   the  Law  on  Issuing  the  Money  of  the  Republic  of
Lithuania  and  other legal acts, a conclusion is to be made that
the  Government  was  entitled  to  establish  the  amount of the
compensation and the procedure of its payment.
     3.1.  The  Constitution  of  the  Republic  of Lithuania was
adopted  in  the referendum on 25 October 1992. It is established
in  Article  128  of  the  Constitution that decisions concerning
state  loans  and  other  basic property liabilities of the State
shall  be  adopted  by  the  Seimas  on the recommendation of the
Government.
     Article  2  of  the  Law of the Republic of Lithuania on the
Procedure   for  the  Enforcement  of  the  Constitution  of  the
Republic  of  Lithuania  stipulates that "laws, other legal acts,
or  parts  thereof  which  were in effect on the territory of the
Republic  of  Lithuania prior to the adoption of the Constitution
of  the  Republic  of Lithuania, shall be effective provided they
do  not  contradict  the  Constitution  and  this  Law, and shall
remain  effective  until  their are either declared null and void
or co-ordinated with the provisions of the Constitution".
     It  means  that  the  legal  acts of the Supreme Council and
the   Government   whereby  it  was  pledged  to  compensate  the
deposits  of  people  of Lithuania and which were passed prior to
the  adoption  of  the  Constitution  are  also  mandatory to the
institutions  of  power  and  government  after  the Constitution
went into effect.
     The   permanence   of  these  commitments  is  confirmed  by
subsequently   adopted   legal   acts   by  the  Seimas  and  the
Government, too.
     The  Seimas  recognised  in  item  2 of its 15 December 1993
Resolution  No.  1-338  "On  indexation of people's savings" that
"people's  deposits  accumulated until 1 January 1991, as well as
the    calculated   interests   for   the   deposits,   and   the
compensations   of   people's   savings  and  insurance  payments
calculated   in   the   manner  prescribed  in  item  1  of  this
Resolution  shall  be  internal loan of the State of the Republic
of  Lithuania  to  people". The Seimas, by this resolution, while
fulfilling  the  provision  of  Article  128 of the Constitution,
implemented  the  right  conferred  to  it  and  recognised  that
compensation  for  people's  savings  and  insurance  payments is
internal  loan  of  the  State  of  the  Republic of Lithuania to
people   (Official   Gazette  "Valstybės  Žinios",  No.  71-1329,
1993).
     It   was   established   in  the  said  resolution  that  by
assessing  financial  capacity  of  the State the Seimas took the
decision  to  compensate  people's  savings  in 1994 according to
then  in  effect  resolutions  of the Government (No. 562 adopted
on 23 July 1993, and No. 834 adopted on 12 November 1993).
     The  Government  following  the  Law on Issuing the Money of
the  Republic  of  Lithuania  which  was  passed  by  the Supreme
Council  on  5  November  1991  and  fulfilling  the 14 June 1993
Resolution  of  the  Litas  Committee  "On issuing national money
and   withdrawal   of   temporary   money   -   coupons   -  from
circulation",  on  23  July  1993  adopted its Resolution No. 562
"On  indexation  of  people's  savings".  In  the preamble of the
aforesaid  resolution  it was indicated that the Government takes
into  consideration  the  grave  economic and financial situation
of  the  Republic  of  Lithuania,  therefore  in  item  1  it was
provided  that  state  banks and the State Insurance Office shall
index  by  applying coefficient 10 the savings of citizens of the
Republic   of   Lithuania,  as  well  as  those  of  persons  who
permanently  live  in  the  Republic  of  Lithuania, and those of
rehabilitated  persons  who  were  exiled  from Lithuania and now
live abroad.
     Items   1.1,   1.2,  1.3,  1.4,  and  1.5  of  the  disputed
Resolution   of   the  Government  established  the  compensation
procedure   of  people's  accumulated  savings.  The  said  items
established  the  dates  taking  account of which newly consigned
deposits  or  the  remainder  subject  to  compensation  of prior
consigned deposits had to be calculated.
     It  was  established  in  item  2  of  this  resolution that
people's  deposits  accumulated in state banks until 1 June 1992,
shall  be  indexed  by  applying  coefficient  2  pursuant to the
procedure  provided  for  in  the 31 January Resolution No. 67 of
the  Government  "On inducing people to sell farm products to the
State   during  winter  and  spring  months"  provided  that  the
remainder  of  these deposits had not changed until 24 June 1993.
Furthermore,  it  was  indicated that the means received for sold
farm  products  until  1  June  1992 and which were included into
people's   accounts   overdue   shall   be  indexed  by  applying
coefficient  2  (Official  Gazette "Valstybės Žinios" No. 10-270,
1992; No. 65-1236,1993).
     Thus  the  Seimas  in fact agreed that the Government by its
resolutions  in  different  periods of time established different
amount of savings' compensation.
     3.2.  The  Government,  when  implementing  the  15 December
1993  Resolution  of  the  Seimas "On indexing people's savings",
adopted   its   21   January  1994  Resolution  No.  34  "On  the
restoration  of  people's  savings  as  well  as  on  payments of
compensation  in  1994".  It  was  provided for in item 1 of this
resolution   to   form  a  particular  Fund  of  Restoration  and
Compensation  of  Savings.  Moreover, it was recognised in item 3
of  the  aforementioned  resolution that the internal loan of the
State  of  the  Republic  of  Lithuania to the Lithuanian Savings
Bank  shall  comprise  of  people's  deposits  accumulated in the
bank  until  1 January 1991 and seized by the former Soviet Union
at  the  same  time,  whereas in item 3.3 the provision of the 23
July  1993  Resolution  No. 562 was reiterated that compensations
to  people  for accumulated deposits and insurance payments shall
be calculated by applying indexation coefficient 10.
     The   Seimas  by  its  26  April  1994  Resolution  "On  the
approval  of  the  regulations  of  the  Fund  of Restoration and
Compensation  of  Savings"  approved  the regulations of the Fund
of  Restoration  and  Compensation of Savings following which the
means  are  accumulated  to  compensate  people's deposits. It is
indicated  in  Part  2  of  the  said  resolution that one of the
sources  of  forming  the Fund of Restoration and Compensation of
Savings  is  compensations for the seized deposits of the Central
Savings   Bank  of  the  former  USSR  acquired  upon  signing  a
corresponding  agreement  with Russian Federation. Besides, on 15
May  1995,  the Government and the Lithuanian Savings Bank signed
an  agreement  where the Government committed itself to cover the
loan  to  this bank for the loans being returned to people during
the period of 10 years.
     Thus,   upon   adoption  of  the  Constitution,  the  State,
however,  did  not  decline its initial commitments to compensate
people  their  deposits even though the legally grounded scope of
deposits' protection was not established.
     4.  The  representatives  of  the petitioner, on the grounds
of  the  provision  "property  shall  be inviolable" of Part 1 of
Article  23  of the Constitution, as well as that of Part 3 which
stipulates  "property  may  only  be  seized  for  the  needs  of
society  according  to  the procedure established by law and must
be   adequately   compensated  for"  alleged  that  the  disputed
Resolution  of  the  Government  violates  property rights of the
depositors.
     It  is  established  in  Part 1 of Article 1091 of the Civil
Code  that  the  object  of private ownership may be any property
without  restricting  its  amount  provided  that  this  code and
other  laws  do  not prohibit to hold this property in accordance
with the right to private ownership.
     According  to  the  doctrine of law, the right of claim is a
type  of  property.  Therefore the right of claim, as well as any
other  property,  is  the  object  of private ownership. Thus the
object  of  the  right of the depositor to ownership is the right
of  claim,  whereas  the object of the right of tangible property
is  particularised  property.  The  owner's  property  rights are
protected  to  the  same extent irrespective of the object of the
right  to  private ownership providing the law does not establish
any  exceptions.  From  the mentioned above a conclusion is to be
made  that  the  subjective  rights of claim of the owner must be
protected  along  with  his rights to tangible property following
the principles of protection developed in property law.
     The   representatives  of  the  petitioner  interpreted  the
notions  "the  State  guarantees  that people's deposits will not
be  lost",  "the  State  ensures the security of deposits" as the
commitment of the State to preserve the value of the deposits.
     The  notion  "security  of  deposits" which is used in legal
acts  is  a  juridical notion which is interpreted as safekeeping
of  deposits  in  credit  offices  which  are responsible for the
preservation  of  the deposits' nominal value and which guarantee
their  payment  on  the  first  demand  of the depositor with the
interest established by law or agreement of the parties.
     "The  preservation  of value of the deposits" is interpreted
as  an  economic category. Devaluation of deposits, as a rule, is
caused   by   objective   economic   developments   (as  well  as
inflation)  which  are  not dependent upon the will of the credit
office that keeps people's deposits.
     Thus   the   notions   "security   of   deposits"  and  "the
preservation  of  value  of  the  deposits"  cannot be identified
according   to  the  juridical  and  economic  meaning  of  their
content.
     Deposits,  in  part,  may  be  preserved from devaluation by
paying  interests  for  them,  by  forming  individual  or  joint
insurance  systems  of  private  banks, etc. However, even though
deposit  insurance  system  is created for the purpose of deposit
protection,  as  a rule, only the payment of nominal value sum is
guaranteed  but  not  compensation of the losses suffered because
of inflation.
     The    representatives    of   the   petitioner   identified
insufficient   compensation   with   seizure   (confiscation)  of
deposits  provided  for  in  Part  4  of Article 471 of the Civil
Code.  However,  this  interpretation means identification of two
notions  which  are  different  in  their  legal characteristics.
Part  4  of  Article  471 indicates legal grounds in the presence
of  which  deposits  may  be  exacted  or  confiscated,  i.e., it
indicates  when  exceptions  can  be  made  from the principle of
deposits'   security   guaranteed   by   the   State.  Meanwhile,
devaluation  of  deposits  because  of  inflation  is an economic
phenomenon.
     5.  A  conclusion  is  to be made from the motives set forth
that  the  State  must  fulfil  its  commitments  to  people  and
compensate  the  devaluated  deposits.  The  establishment of the
amount  of  compensation  is a prerogative of the Seimas as it is
established  in  Article  128  of the Constitution that decisions
concerning  state  loans  and other basic property liabilities of
the  State  shall  be adopted by the Seimas on the recommendation
of  the  Government. The Constitutional Court also notes that the
Seimas  is  not  bound  by earlier adopted legal acts, therefore,
by  taking  account  of  actual  possibilities,  it may establish
other  compensation  coefficients  of  people's devalued deposits
and insurance payments.
     The  Constitutional  Court on the grounds of the motives set
forth  has  made  a  conclusion that there are not any sufficient
legal  arguments  to  ground  as  to  what  amount  of indexation
coefficient  must  be  held  as  corresponding the constitutional
principle  of  inviolability of property, therefore the provision
of  the  disputed Resolution of the Government may not be held as
contradicting Article 23 of the Constitution.

     Conforming  to  Article  102  of  the  Constitution  of  the
Republic  of  Lithuania and Articles 53, 54, 55 and 56 of the Law
of  the  Republic  of  Lithuania on the Constitutional Court, the
Constitutional Court has passed the following
                             ruling:                             
  
     To  recognise  that  the  provision "by applying coefficient
10"  of  the 23 July 1993 Resolution No. 562 of the Government of
the  Republic  of  Lithuania  "On indexation of people's savings"
is  in  compliance  with  the  Constitution  of  the  Republic of
Lithuania.
  
     This  Constitutional  Court  ruling is final and not subject
to appeal.
     The  ruling  is  promulgated  on  behalf  of the Republic of
Lithuania.