OREANDA-NEWS. December 06, 2011. The Financial and Capital Market Commission has published the procedure under which the state-guaranteed compensation will be paid to the customers of Latvijas Krajbanka.

The compensation will be made available either in cash or by transfer to an account specified by the customer at any bank. Swedbank customers can have it transferred to their account with Swedbank, reported the press-centre of Swedbank.

To claim their compensation, Swedbank's customers need to come to any branch of the Citadele bank and present their passport. The money will be paid in a single transaction; therefore, you will need to choose your preferred form of payment:

by transfer to an account with any bank;

in cash.

Make sure that the amount to be paid is right before receiving the compensation! In case of any uncertainty or complaint about the payout or the amount of compensation or about who qualifies as a depositor, please contact the Financial and Capital Market Commission. Phone: 67774800 and 67774801. E-mail fktk@fktk.lv, Address Kungu iela 1, Riga, LV-1050, Fax: 67225755.

How can Swedbank customers receive money in their Swedbank account?

Check your account number – you can do it at any Swedbank branch, on the Internet Banking site or by phone at 67444444 (if you have the Telephone Banking agreement);

Take your passport and go to any branch of the Citadele bank (starting from 29 November) and submit your application to the bank employee.

If you wish to receive more than LVL 500 in cash, a prior notification is required.

Opening an account with the Citadele bank is not mandatory for receiving the guaranteed deposit.

Further information about calculation of the compensation
Prepared according to press release of 25.11.2011 by the Financial un Capital Market Commission.

In compliance with the Law on Deposit Guarantees, the state guarantees to reimburse the clients of Latvijas Krajbanka in the amount of 100 000 euro equivalent in lats or 70 280.40 lats. The state-guaranteed compensation covers all types of funds – deposits, current accounts, salary accounts, savings accounts.  Clients are entitled to receive the guaranteed compensation over the course of the coming 60 years i.e. up until 2071.

In compliance with the Law on Deposit Guarantees, money will be paid out in lats. Deposits in other currencies will be translated into lats at the exchange rates of the Bank of Latvia in force on the day when deposits became unavailable. The Citadele bank will receive the Latvijas Krajbanka client register from the Financial un Capital Market Commission containing customer details, as well as information about the amount of money payable to each client, and Citadele will not need to perform any re-calculations or currency exchanges.

Overall, cash compensation is due to approximately 235 000 individuals and legal entities. Local governments are not entitled to the guaranteed compensation as the Law on Deposit Guarantees stipulates that the guaranteed compensation cannot be paid to institutions and capital companies financed out of the state budget or local government funds.

The clients, whose deposit with Latvijas Krajbanka exceeds the established cap of LVL 70,280.40, may file a creditor claim within the liquidation or insolvency procedure of Latvijas Krajbanka.