Funds from Sberbank CZ clients´ compensations are being returned to the Deposit Insurance Fund

Prague, March 5, 2024: In the upcoming days, approximately 95% of the Guarantee System's claim against Sberbank CZ, resulting from the payment of deposit compensations to its clients, will be transferred back to the Deposit Insurance Fund. The Fund is administered by the Financial Market Guarantee System. Renáta Kadlecová, the executive director of the Financial Market Guarantee System, states, "This amounts to nearly CZK 26 billion. The Guarantee System will receive these funds from the partial distribution in the insolvency proceedings of Sberbank CZ. We anticipate the return of the remaining five percent shortly."

The Deposit Insurance Fund will retain more than CZK 43 billion following the partial distribution of funds. This Fund is activated when a bank, bank building society, or credit cooperative bank faces collapse, facilitating compensation of insured deposits to their clients. Alongside the Deposit Insurance Fund, the Guarantee System manages the Crisis Resolution Fund, utilized during crises jeopardizing the stability of the banking sector.

The payment of deposit compensation to Sberbank CZ clients began on March 9, 2022, seven business days after the Czech National Bank issued a notification regarding the bank's inability to meet its obligations. To date, clients have withdrawn a total of CZK 25.54 billion, which amounts for 98.6% of all insured deposits. Approximately CZK 400 million remains unclaimed. Clients have until March 10, 2025, three years after the commencement of the payout, to collect their deposits.

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