Payments to Baltic International Bank depositors will start Thursday

Take note – story published 1 year and 4 months ago

The Financial and Capital Market Commission (the FKTK) said December 21 it had made a decision on
the procedure for the guaranteed compensation payments to the depositors of Baltic International Bank SE starting from 22 December.

"The disbursement of the guaranteed compensation to the depositors of Baltic International Bank SE will be started on the seventh working day following the occurrence of the unavailability of deposits identified by the FKTK's decision of 13.12.2022," the regulator said.

The "decision" was a one to suspend all operations of the once-high-flying boutique bank after it was deemed to be failing or likely to fail and falling short on its anti- money laundering efforts – not for the first time – as previously reported by LSM.

In total, 43.7 million euros are needed for the disbursement of guaranteed compensation to the customers of Baltic International Bank. The guaranteed compensation payments will be fully covered by the funds from the Deposit Guarantee Fund (DGF), and no funds from the State budget will be needed for that purpose.

1,257 or 80% of all customers of Baltic International Bank will recover their deposits in full in the form of guaranteed compensation. Payments will be made through Latvijas Banka, te Latvian central bank.

The guaranteed compensation will be paid in a single lump-sum payment in the euro currency transferring it to an account opened in the name of Baltic International Bank SE depositor in another credit institution or financial institution operating in the Single Euro Payments Area (SEPA).

Customers who have access to online banking may claim the guaranteed compensation to which they are entitled through online banking system of Baltic International Bank SE and by submitting an application for guaranteed compensation.

Baltic International Bank SE customers who do not have access to online banking can claim guaranteed compensation in any of three ways:
1) to visit Baltic International Bank in person during its working hours at the bank’s premises: Grēcinieku iela 6, Riga.
2) to submit an electronically signed claim to Baltic International Bank SE; e-mail address:
[email protected];
3) to send certified (notarial) claim by post to Baltic International Bank SE address:
Grēcinieku iela 6, Riga, LV- 1050.

Legal representatives of minors can submit a guaranteed compensation claim at the premises of Latvijas Banka during working hours.

The Latvian Deposit Guarantee Scheme provides for guaranteed compensation up to EUR 100 000 for each eligible customer, payable to both natural and legal persons for all types of deposits in any currency. The guaranteed compensation applies to the deposits of bank’s customers, as well as deposit interest accrued until the date of occurrence of the unavailability of deposits.

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