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Sunday 15.09.2019 | Name days: Sandra, Gunvaldis, Gunvaris, Sondra
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Compensation payments of defunct Latvian PNB Banka begins

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

With operations of the Latvian bank, AS PNB Banka, stopped, the process of paying the guaranteed compensation to its clients has begun on August 22, according Citadele, the lender tasked with the payments.

Citadele noted on Thursday that a separate procedure has been developed for every group of PNB Banka’s clients. According to information available on PNB Banka’s web site the disimbursement will take place via bank accounts in Citadele.

In case a client does not have a Citadele bank account, she or he has to visit one of 20 PNB Banka’s branches across Latvia with a passport or an ID.

There a Citadele account would be opened along with granting access to its online banking site.

It will also be possible to withdraw up to 800 EUR every month from any ATM, and an unlimited amount of times from Citadele ATMs, at no additional cost.

More information is available on the website of PNB Banka and that of Citadele.

Reportedly, operations of PNB Bank [formerly Norvik Banka] were halted in Latvia in mid-August, as confirmed by Finance and Capital Market Commission (FCMC).

The decision made by the commission provides for the bank to completely cease providing financial services, including completion of clients’ payments as of 21:00 on Thursday, 15 August. This measure was applied to prevent outflow of the bank’s finances.

FCMC reports that operations of PNB Bank were halted and deposits made inaccessible in accordance with decisions made by European Central Bank and Single European Resolution.

«On 15 August European Central Bank as the direct supervisor of PNB Bank decided to declare this institution as one that has either ended up or will end up in financial services. The Single European Resolution’s board has made the decision to not perform regulation of PNB Bank. This means performing no measures to stabilize the bank’s operations. Considering the aforementioned and to ensure security for the bank’s deposits, FCMC council has decided at a meeting to halt financial operations in PNB Bank and has decided on inaccessibility of deposits,» the commission says.

European Central Bank has made its decision having found that the bank has not complied with regulations and after having assessed the bank’s financial situation.

«We understand this is an unexpected piece of news for the bank’s clients.

However, we can prove FCMC will do all it can to come up with the most comfortable and efficient solution, as well as start paying compensations (up to EUR 100 000 to each) to all clients as soon as possible.

In the coming days already 99.2% of depositors, according to initial estimates, will be able to start getting back the money they had saved up in the bank. The amounts will be fully covered using resources from the Deposit Guarantee Fund,» said FCMC head Kristīne Černaja-Mežmale.


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