On Disbursement of Guaranteed Compensation

Riga, Latvia, March 2, 2018, 14:00 / Banking

This is to inform that the procedure for disbursement of guaranteed compensations to the eligible clients of ABLV Bank (hereinafter – the Bank) in accordance with the Deposit Guarantee Law has been determined. Given that the funds are unavailable to the clients of the Bank already since 19 February 2018, it was decided to commence disbursement of compensations sooner than the law provides – starting from 3 March 2018, it will be done by Citadele banka, AS.

According the Deposit Guarantee Law, there are up to EUR 100 000 guaranteed to each eligible client from Deposit Guarantee Fund. ABLV Bank has sufficient amounts of liquid assets to ensure repayment of all sums; therefore, the Bank has already transferred more than EUR 480 million to the Fund for disbursement guaranteed compensations.

On 28 February 2018, we carried out calculation of the sums of guaranteed compensations to be disbursed for all clients and placed those funds on separate accounts. You can see the sum in Internetbank, in the “Guaranteed disbursement account”. The disbursement of compensation shall be ensured for all types of deposits in all currencies in the amount not exceeding EUR 100 000 in all accounts in total unless these funds are not for covering client’s liabilities. It implies deposits, balance on current accounts, card accounts, cash accounts for brokerage services, savings accounts etc.

Clients of the Bank eligible for guaranteed compensation are individuals, legal entities, residents and non-residents. Certain exceptions regarding deposits for which the guaranteed compensation is not being paid are provided in Section 23 of Deposit Guarantee Law.

Starting from 3 March 2018, the disbursements shall be done in accordance with the following procedure:

  • An application for disbursement of guaranteed compensation you can submit in Citadele banka, AS and its branches:
    • for all clients at "Citadele" (Riga, 2A Republikas laukums),
    • for Latvian residents also at: branch "Laimdota" (Riga, 20-1 Krišjāņa Barona St.), client service centre "MOLS" (Riga, 46 Krasta St.), client service centre "Skanste" (Riga, 50 Skanstes St.) and Jurmala branch (Jūrmala, 30 Jomas St.) at their business hours;
  • guaranteed compensation shall be disbursed in one payment to each client in euros;
  • if guaranteed compensation amount does not exceed EUR 1000, upon depositor’s choice it can be disbursed in cash to the depositor applying charges to disbursement of cash in accordance with Citadele banka, AS pricelist;
  • if guaranteed compensation amount exceeds EUR 1000, it can be transferred only to the depositor’s account in any credit institution in accordance with Citadele banka, AS pricelist.

Information on the documents required for applying for the guaranteed compensation shall be published by Citadele banka, AS on its website. Additionally, Citadele banka, AS will inform the depositors on the possibilities to send the documents to Citadele banka, AS for preliminary check before the depositor arrives to the bank in order to prevent any deficiencies, for example, related to documents certifying the authorisation of a representative of a legal entity.

Upon servicing the minor receivers of the guaranteed compensation (savings accounts for minors), the guaranteed compensation shall be disbursed to any of the parents or a custodian that present their passport or identification document, birth certificate of a minor and a permit by the Orphan's Court. The permit of the Orphan's Court is not necessary if the guaranteed compensation does not exceed 20 EUR or it will be disbursed to a savings account already opened for the child in another Latvian credit institution.

More information about the terms and conditions of disbursement of the guaranteed compensation are available at our website. The announcement about the procedure, time and place of disbursement of guaranteed compensation shall be also published in the newspaper “Latvijas Vēstnesis”.

Once again, we would like to remind that for maximum protection of interests of clients and creditors, on 26 February 2018, at extraordinary general shareholders’ meeting, ABLV Bank made a decision about voluntary liquidation. This is the way to ensure the best protection of own assets in order to settle with all clients. The financial condition of the bank is excellent, therefore we should take good care about every client and protection of their rights.