Questions and Answers

How much is guaranteed by the state to each client of the bank?

In the event of unavailability of deposits at any bank in Latvia, the state guarantees a compensation to all of bank’s clients in the amount not exceeding EUR 100,000 and it is covered from the Deposit Guarantee Fund. ABLV Bank, AS, in liquidation has provided the Guarantee Deposit Fund with all the funds necessary for disbursement of guaranteed compensations to its clients.

What type of assets can be received as guaranteed compensation?

Compensation is guaranteed for all types of deposits with the total amount not exceeding EUR 100,000 held in any currency and any account, including accounts opened in branches of the bank. Guaranteed compensation covers deposits, current account balances, salary accounts, savings accounts, etc. Compensation for deposits not exceeding EUR 100,000 is disbursed in full.

Covered deposit disbursed as guaranteed compensation also includes the interest accrued on the deposit until the day when unavailability of deposits was announced, provided that the total amount of does not exceed EUR 100,000.

Who is eligible for guaranteed compensation not exceeding EUR 100,000?

All clients of the bank – natural and legal entities, residents and non-residents – are eligible for guaranteed compensation not exceeding EUR 100,000. State and municipal institutions (with annual budget below EUR 500,000) holding account in the bank are also eligible for guaranteed compensation.

For how long will guaranteed compensations be disbursed?

Disbursement of guaranteed compensations began on 3 March 2018.

The client loses the right to claim guaranteed compensation after five years from the day when unavailability of deposits was announced.

In what currency is guaranteed compensation disbursed?

According to legislation, guaranteed compensation is disbursed in EUR. Deposits held in other currencies are converted to EUR. Legislation does not envisage compensation for losses incurred as a result of currency exchange.

Is the subordinated debt issued by the bank covered by guaranteed compensation?

No, subordinated debt is one of the exceptions not covered by guaranteed compensation.

How is the amount for disbursement determined?

Company’s accounting records have information about all clients entitled to guaranteed compensation and the respective amounts. This data is monitored and checked also by the Financial and Capital Market Commission.

Is it possible to receive guaranteed compensation above EUR 100,000, and who is entitled to it?

Yes, individuals having received certain types of payments are entitled to guaranteed compensation of additional EUR 200,000 (i.e., a total of up to EUR 300,000). Such payments include payments from transactions with real estate, social security benefits or compensations, as well as compensation for damage or wrongful conviction that were received during the last three months prior to announcement of unavailability of deposits.

Is guaranteed compensation paid if the account in the bank is seized?

No, guaranteed compensation will be paid only in the amount that was available to the client on the day of announcement of unavailability of deposits. If a bailiff or tax administration brings a claim against client’s funds held with the bank, the amount due and up to the guaranteed EUR 100 000 will be transferred to the bailiff or tax administration. If after the settlement with bailiff or tax administrator a part of seized funds is released, client will be able to receive that amount only after its release. In such a case, the five-year period of application for guaranteed compensation begins on the day when total amount or part of funds covered by guaranteed compensation is released to the client.