The Financial and Capital Market Commission (FCMC) has decided on the method for paying State-Guaranteed Compensation to PNB Banka clients from August 22nd this year, entrusting Citadele Bank with the task of disbursing the State-Guaranteed Compensation. Therefore compensation will be available to PNB Banka clients five working days after access to funds was blocked, as established by the FCMC in their 15.08.2019 ruling.
In accordance with legislation, guaranteed compensation must be available to clients of the bank from the eighth working day after the day on which blocked access to funds is established. Each PNB Bank client will be paid guaranteed compensation up to 100,000 Euro. Around 279 million Euro is necessary to cover compensation to PNB Banka clients. The full amount of compensation will be taken from the Deposit Guarantee Fund (DGF), and no money will be taken from the state budget.
99.2% of PNB clients will receive their full deposits in the form of State-Guaranteed Compensation. Of these, 95% are domestic clients, while just 4.2% are international clients.
Head of the FCMC Resolution and Guarantee Funds Division Jeļena Ļebedeva: “Clients of Latvian banks are protected by the state, and this applies to both domestic and international clients in Latvia. The government’s deposit guarantee system provides solutions in this kind of situation which ensure the protection of client deposits. We have made all efforts to find a bank which can offer the most suitable solutions for the interests of clients, and have made arrangements for the disbursement of guaranteed compensation; we have also involved the State Social Insurance Agency to ensure that PNB Banka clients receive their benefits and pensions as quickly and conveniently as possible.”
Bearing in mind that a significant portion of PNB Banka clients are recipients of pensions and state support, the FCMC and Citadele Bank are working in close collaboration with the State Social Insurance Agency (SSIA) to ensure that clients receive their benefits and pensions as quickly and conveniently as possible.
The FCMC has decided to entrust the disbursement of guaranteed compensation to Citadele Bank, evaluating its solution as most suitable for the interests of clients and bearing in mind its technical capabilities for beginning the payment of compensation as quickly as possible. Citadele Bank has confirmed its readiness to begin disbursement of guaranteed compensation.
Arrangements for payment of State Guaranteed Compensation to PNB Banka clients
Private persons, recipients of SSIA support (benefits/pension) with an existing Citadele account:
No need to go to a Citadele branch. Your compensation will be automatically transferred to your Citadele account. Bank consultants will inform SSIA of the need for support to be paid into Citadele. Within 6 months of the start of compensation disbursement, you must confirm with SSIA whether you wish for your support to continue to be paid into Citadele.
Private persons, recipients of SSIA support (benefits/pension) without a Citadele account:
From 22.08.2019, visit one of the set PNB Banka branches to sign documents, taking along your ID card or passport. A Citadele account will automatically be opened for you into which your compensation will be paid. The online bank will be available to you as soon as you sign. You will receive your payment card by post within 2 days, which you will be able to use for payments and cash withdrawals. There you will also be able to fill in an application for SSIA to pay your benefits/pension into your Citadele account, or state your desire for this to be paid into another bank’s account.
Private persons with an existing Citadele account:
Fill in an application for the disbursement of your compensation through the online bank or in a Citadele branch. Your guaranteed compensation will be transferred to the account indicated in the application – to an existing account in JSC "Citadele banka" or to an account in any other financial institution.
Private persons without a Citadele account:
Go to a Citadele branch, show your identification and receive your compensation via transfer to your account in any financial institution.
Private persons - international residents:
Call Citadele to arrange a meeting. Visit Citadele’s Head Office at 2A Republikas Laukums, Riga, show your identification and receive your compensation via transfer to your account in any financial institution.
Legal persons and their representatives:
Call Citadele at 67010000 and arrange a meeting. Go to the arranged Citadele branch, show your identification and open a Citadele account or receive your compensation via transfer to your account in any financial institution.
Attention - clients who must visit a branch: to ensure a swift payment process, we ask clients to ensure that identification documents have been registered with PNB Banka as your current client ID information.
The Latvian Deposit Guarantee System stipulates up to 100,000 Euro in compensation for each depositor. This is paid to both private and legal persons for all types of deposit in any currency. Guaranteed compensation applies to the bank clients’ deposits and any interest accumulated up until the day when funds have become unavailable.
