Guarantee
AS Eesti Krediidipank Latvijas filiāle participates in the deposit guarantee scheme of the Republic of Estonia. All deposits made with the Bank’s branch are guaranteed pursuant to the Guarantee Fund Law.
What is the Guarantee Fund?
The Guarantee Fund is a public-law legal entity formed in Estonia under the Guarantee Fund Law. For the purpose of protecting deposits, credit institutions pay fixed contributions to the Guarantee Fund, by means of which the Fund has created the deposit guarantee sub-fund. The Guarantee Fund ensures accumulation of funds, the deposit guarantee sub-fund management and guaranteed reimbursement.
Who has rights to the guaranteed reimbursement?
A person (depositor), who made a deposit with AS Eesti Krediidipank Latvijas filiāle in any currency, has rights to the guaranteed reimbursement, except:
- the sum resulting from offset of liabilities between the depositor and the credit institution, with maturity date thereof preceding inaccessibility of deposits;
- deposit, which holder is non-identifiable;
- funds at the disposal of the credit institution and included in the credit institution’s own funds;
- deposit confiscated pursuant to the court judgment on a charge of money laundering or terrorism financing.
In which cases and from which funds deposits will be paid out?
The Guarantee Fund ensures guaranteed reimbursement to depositors from the deposit guarantee sub-fund, provided that at least one or several circumstances as referred to below have occurred, irrespective of sequence thereof:
- a moratorium has been set in respect of the credit institution;
- the activity license is recognized as null and void;
- pursuant to the court judgment, bankruptcy proceedings have been commenced against the credit institution.
Which is the amount of the guaranteed reimbursement?
Irrespective of the date of registering a deposit, guaranteed reimbursement for a deposit made with AS Eesti Krediidipank Latvijas filiāle for one depositor is equal to the amount of the guaranteed deposit, however, not more than 100 000 euros. Deposits in another currency will be re-calculated into euros in accordance with the exchange rate set by the European Central Bank on the date when inacessibility of deposits emerged.
The guaranteed reimbursement application.
A depositor is not required to submit to the Bank the application or other documents proving the depositor’s rights to the guaranteed reimbursement. Bankruptcy administrator controlling moratorium or the Bank’s liquidator prepares and submits within 7 business days from the deposit inaccessibility date to the Guarantee Fund the list of depositors, who, in accordance with the information included in the accounting registers of the Bank as of the date of inaccessibility of deposits, will be paid the guaranteed reimbursement. The Guarantee Fund will pay the guaranteed reimbursement to depositors on the basis of appropriate document made by the Bank.
The guaranteed reimbursement calculations and payments.
The Guarantee Fund decides on the procedure, time and place of paying the guaranteed reimbursement and publishes this information in two national newspapers of Estonia and on the Guarantee Fund website. Guaranteed reimbursement will be paid at the latest within 20 business days from the date when inaccessibility of deposits emerged. The Guarantee Fund may extent this period by not more than ten business days. Guaranteed reimbursement will be paid in euros. Guaranteed deposits in another currency will be re-calculated into euros at the appropriate currency exchange rate set by the European Central Bank on the date when inaccessibility of a deposit emerged. Guaranteed reimbursement is based on the amount of the guaranteed deposit on the date of occurrence of inaccessibility of deposits, taking into account that:
- if one depositor has several guaranteed deposits in one bank, all guaranteed deposits of one depositor will be summed up and considered to be one guaranteed deposit;
- depositor’s rights to the guaranteed reimbursement and depositor’s obligations to the Bank, with maturity date thereof preceding inaccessibility of deposits, will be offset, and they will be taken into account in calculating the guaranteed reimbursement;
- guaranteed reimbursement for a joint deposit will be paid to each person made a joint deposit, in accordance with the deposit share as set out in the agreement signed with the Bank. With no each person’s share in the joint deposit determined, the joint deposit will be divided into equal shares.