More information on bank resolution, deposit insurance and other relevant issues is available at this website under the tab Deposit Protection in Cyprus.
Deposit Guarantee Scheme (Cyprus): The Deposit Guarantee and Resolution of Credit and Other Institutions Scheme is a separate public law corporate body. The Management Committee has five members. These include the Governor of the Central Bank as the Chairman, two staff members from the Ministry of Finance, and two of the Central Bank. The administration of the scheme is the responsibility of the Central Bank of Cyprus under supervision of the Management Committee.
Secured Deposit Limit: €100.000 per (eligible) account holder and bank according to EU laws.
Temporary High Balances: € 300.000 additional coverage potential for retail creditors whose deposits serve social purposes or derived from residential and private real estate transactions (applications are examined on a case by case basis).
Claim Filing Procedure: Account holders file their claim in person at the premises of the DGS administration. A completed claim form must be supported by documented, certified and recent evidence of account ownership and a repayment instruction to another bank account held by the account holders in the EEA.
Claim Submission Timeframe: Claims by verifiable account holders must be submitted within 24 months after the activation of the scheme. Claims that are submitted after this claim period are not taken into consideration. Creditors remain in a position to claim repayment during bank liquidation and other legal procedures.
Repayment Timeframe: 7 working days unless further examination of the claim is required or repayment cannot be executed for administrative reasons.
Repayment Conditions: The term Deposit Guarantee Scheme (Cyprus) is somewhat broad since not all bank deposits qualify for DGS compensation. Exclusions of DGS coverage are laid down in national laws, based on the European Directive on Deposit Guarantee Schemes (2014/49/EU). Extensive information on Deposit Protection in Cyprus is available here.
Rejections of a DGS Claim: The Management Committee of the Deposit Guarantee Scheme Collaborates with the DGS administration to verify claims made against the fund. As the treasurer of the scheme, the Management Committee may approve, reject or pause the claim. When claims are put on hold, supporting evidence of claim eligibility must be presented. Failure to submit sufficient information to the scheme results in a rejection. After a second rejection to the scheme, the claimant may take his case to the administrative court. The administrative court does not rule on claim eligibility but merely refers the matter back to the Management Committee for reinspection when this is justified.
Premiums and Contributions: A combination of membership fees, ordinary contributions and risk-based premiums is paid on an annual basis by licensed and supervised deposit taking credit institutions.
Membership and Participation: Membership and participation in obligatory for all credit institutions established in Cyprus. Subsidiaries and branches of foreign credit institutions may or may not participate in the scheme. An up to date list of participants is available on the website of the Central Bank of Cyprus and on this website.
Funding Protocols and Reserves: Members of the Deposit Guarantee Scheme in Cyprus contribute to the scheme to a maximum of 0,8% of their insured deposits. When a member fails, repayment to eligible account holders is primarily done with the own funds of the failed member, where needed supplemented with the funding reserves of the scheme. In matters of systemic failure of the financial system, or when the fund has ran out of reserves, extraordinary contributions may be imposed on other members. The reserves of the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme of Cyprus are currently estimated at € 78 Million euro.
Need Help To Submit Your DGS Claim or to Substantiate a Rejected DGS Claim? Contact us Today…
- Visit: www.depositguaranteeclaim.com/free-case-evaluation
- Call: 00357 25 057 544 or 001 646 513 2855
- Email: [email protected]
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