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Ceturtdiena 18.10.2018 | Name days: Rolanda, Rolands, Ronalds, Erlends
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Payment of guaranteed deposits may need LVL 350 million

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Irena Krumane

Payment of guaranteed deposits to Latvijas Krajbanka clients might need about LVL 350 million, Irena Krumane, head of the Financial and Capital Market Commission, told Latvian Television.

The guaranteed sum of deposits totals 100 000 euro (LVL 70 000) per person. Krumane fears the guarantees will be paid out, because Krajbanka is in a really bad situation and she has nearly lost any hope it could restart operating.

However, she adds that we still need to look forward to the decision of the Lithuanian government to see what it intends to do with Krajbanka parent bank – Snoras.

Funds will be drawn from the Deposit Guarantee Fund, which is made up by payments by banks. At the moment, LVL 149 million are available in the fund, while the rest of the necessary money will be borrowed from the State Treasury, not taken from the state and tax payers. When Krajbanka assets are sold, the loan will be repaid. Tax payers money will not be used to bail out the bank, she says.

Krumane seems to have barely any hope that also those whose deposits exceed EUR 100 000 will get their money back. She adds that hopefully if Krajbanka assets are realized successfully, also bigger deposits will be recovered.

She stresses repeatedly that, according to the legislation, sums above EUR 100 000 are not compensated, therefore, she suggests differentiating the risk and depositing at several of dozens of Latvian banks.

BNN already reported, on the grounds of financial shortages found at Latvijas Krajbanka, the State Police have launched criminal proceedings, says Laura Pakalne, secretary at the General Prosecutor’s Office.

According to her, the Financial and Capital Market Commission has notified the General Prosecutor’s Office about the shortage of financial means. Following that, the State Police has started criminal proceedings, while the Prosecutor’s Office is supervising the process.

Ref: 103.105.105.292


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  1. Maurice says:

    Nobody is stupid enough to have more than 100 th euros on one account If an account overtakes this sum an other one is open on an other name.This lady states this business wont cost taxpayers even a penny moreover the governement will make money on selling the assets .Well wait and see.

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