Protection of depositor interests

AS „Citadele banka” in accordance with the requirements of the Deposit Guarantee Law (the Law) informs that the deposits of clients at the bank are protected under the state’s deposit protection system. This system ensures that deposits of clients (both natural persons and legal entities) at each credit institution are protected and in cases of occurrence of unavailability of deposits (declaration of insolvency, annulment of licence of the credit institution or other cases of unavailability of deposits provided for in the Law) are repaid in the amount and the term prescribed by the Law.

The above-said system envisages that in case of unavailability of deposits of the credit institution the repayable deposit amount or guaranteed compensation is equal to the deposit amount but not exceeding 100 000 euro and it is repaid from the Deposit Guarantee Fund .

In cases when the client has several deposits at one and the same credit institution (for example, salary account, deposit, savings account), then the deposits of all types are summed up and the maximum compensation limit – 100 000 euro – is applied to the total amount. In the calculation of the amount of guaranteed compensation due to a depositor the depositor’s liabilities against the credit institution may be taken into account and mutually offset.

In addition to the maximum limit amount of 100 000 euro, a depositor has the right to receive an additional compensation up to 200 000 euro, if the funds of the depositor (natural person) were transferred into the account at the earliest three months before the day of unavailability of deposits and they are composed of the sale of a residential real estate owned by the depositor, were paid out for a social objective (for example, a payment from a spouse in case of divorce) or is a compensation for harm of criminal nature or wrong judicial conviction of the person.

More detailed information about the deposit protection may be found at the website of the Financial and Capital Market Commission: Address of the Financial and Capital Market Commission: Kungu iela 1, Riga, LV-1050, telephone: 6777 4804.

Background Information on the Protection of the State-guaranteed Deposits