Information Leaflet – A Deposit Guarantee Scheme Reimburses a Limited Amount to Compensate Account Holders Whose Bank in Latvia Has Failed
Deposit Guarantee Fund of Latvia: Bank deposits held by eligible account holders at member institutions in the Latvian deposit guarantee scheme are protected against loss up to the secured deposit limit when such deposits become unavailable. Unavailability of deposits is the result of institutional challenges, revocation of the banking license, insolvency or any other case where the Commission has established that the participant in the deposit guarantee scheme is incapable of paying out a guaranteed deposit and has decided on the occurrence of unavailability of deposits.
Secured Deposit Limit: 100.000 euro per bank and depositor.
Additional Insured Coverage: In certain cases, the amount of covered compensation may exceed 100 000 euro, for instance, if the person’s eligible deposit was consisted of the funds derived from transactions with residential immovable property owned by the person, social security benefits or different types of compensations paid. In addition to the maximum guaranteed compensation in the amount of 100 000 EUR, a depositor is entitled to the guaranteed compensation in the amount of up to 200 000 EUR in accordance with the types of deposits and provisions specified in Section 4 of the Deposit Guarantee Law.
Claim Filing Procedure: Swift action by the Financial and Capital Market Commission and the Latvian deposit guarantee fund is taken between 8 and 10 working days after bank deposits become available. Such action ensures that the repayment process can start. Creditors must file their DGS claim in person at the premises of a designated Latvian agent bank. Repayment to eligible depositors is made by bank transfer.
Claim Submission Timeframe: The Deposit Guarantee Fund of Latvia makes insured deposits available within 8 to 10 working days after the deposits become unavailable. Account holders and other creditors must submit their claim to the fund within 5 years after the deposits become unavailable. Failure to comply with this timeframe disqualifies the creditor for DGS compensation. Such claims are subject to bank liquidation procedures.
Repayment Timeframe: Claim verification and repayment is effectuated within 21 days unless supporting evidence is required. The creditor must comply with mandatory protocols to receive the insured payment. Failure to comply with such requirements delay repayment.
Repayment Conditions: Natural persons and legal entities both in Latvia and abroad are covered by the deposit guarantee fund.
DGS Claim Rejections: Deposits held by public authorities and financial institutions, as well as dormant accounts for a period of at least 24 months and accounts subject to illegal activities and convictions for money laundering are not covered by the fund.
Scheme Architecture: The reserves of the Deposit Guarantee Fund have been accumulated from quarterly payments of member institutions. In general, this is a percentage of attracted deposits laid down in the Deposit Guarantee Law, as well as income obtained as a result of managing the funds of the Fund. The reserves of the fund are currently estimated at around 125 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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