Central Bank of Latvia to Assume Control of Distressed Banks' Compensation Program
In a significant move, the Bank of Latvia (LB) has assumed responsibility for the payment of compensation to former depositors of AS "Citadele banka". This decision was made in response to a request from the bank, following its folding.
The application process for former depositors seeking compensation is now accessible online via the LB website. The location of the application process is clearly indicated on the bank's official website, making it easy for depositors to find and initiate their claims.
The Bank of Latvia will continue to pay compensation where it is still appropriate years after the banks in question folded. This means that eligible depositors can still claim compensation for their deposits, even if they were made several years ago.
The process generally involves former depositors contacting the Bank of Latvia directly, as it is now responsible for handling payments of compensation related to Citadele banka’s deposits. The Bank of Latvia will likely require verification of depositor identity and proof of deposit claims, such as bank statements or account closure documents.
Compensation amounts usually cover deposits up to the insured limit defined by the national deposit guarantee scheme, which in EU countries (including Latvia) is typically €100,000 per depositor per bank. Once claims are verified, the Bank of Latvia will communicate the timeline, required documentation, and payment mechanisms (e.g., bank transfer or cheque).
If depositors have not yet been contacted, it is recommended to check the Bank of Latvia’s official website or contact their customer service for specific instructions and claim forms. This process aligns with standard deposit guarantee schemes in the EU, and since the Bank of Latvia is handling payments for Citadele banka depositors, they are the rightful point of contact to claim compensation.
It is essential to note that this information is based on general knowledge of deposit guarantee fund operations under the Bank of Latvia’s supervision. Depositors are advised to verify specific procedures with the Bank of Latvia’s official resources.
Previously, Citadele banka was responsible for the payment of compensation prior to the Bank of Latvia taking over. The decision for the Bank of Latvia to take over the compensation payments was made by the Council of the Bank of Latvia on March 17, 20XX. This move aims to provide stability and security to former depositors of Citadele banka.
The Bank of Latvia's assumption of responsibility for compensation payments to former Citadele banka depositors is applicable for years after the bank's folding, even for deposits made several years ago. Former depositors can access the application process online on the Bank of Latvia's website, and the process may require verification of identities and proof of deposit claims.
