PrintCompensation for deposits
Date of compensation
Deposits of depositors of credit institutions registered in Estonia and Estonian branches of foreign credit institutions shall be guaranteed and compensated for out of the Deposit Guarantee Sectoral Fund.
The Fund is required to compensate for deposits under the conditions and pursuant to the procedure provided by the Guarantee Fund Act as of the date on which the deposits become unavailable.
For the purposes of the Guarantee Fund Act, the date on which deposits become unavailable is one of the following dates, whichever occurs first:
- the sixth working day after a moratorium is declared on a credit institution and the payment of deposits are stopped for more than five working days;
- the date on which the authorisation of a credit institution is revoked;
- the date on which the authorisation issued to a foreign credit institution for foundation of a branch in Estonia is revoked;
- the date on which bankruptcy proceedings are commenced against a credit institution on the basis of a court ruling.
Giving notification to depositors
Within three working days after the date on which deposits become unavailable, the Fund shall publish a notice in at least two daily national newspapers on at least two occasions setting out at least the following information:
- the name of the credit institution or the branch of a credit institution in which deposits have become unavailable;
- the procedure and terms for gaining access to the accounting information including balance statements regarding the deposits and for the submission of positions on the correctness thereof;
- the term and procedure for payment of compensation;
- a list of the documents required upon the payment of compensation.
Tagatisfond and Financial Supervision Authority shall publish this information on their webpages immediately.
Procedure for granting compensation
Not later than within seven working days after the date on which deposits become unavailable, the trustee in bankruptcy, moratorium administrator or liquidator of a credit institution is required to:
- ensure that each depositor has the opportunity to gain access to the accounting information regarding the deposit thereof and to receive a balance statement regarding the deposit;
- provide the Fund with information regarding the depositors and the balances of their deposits, indicating separately the information regarding the depositors and deposits
Depositors have the right to submit their positions regarding the correctness of the balance of their deposits to the trustee within twelve working days after publication of the last notice in daily national newspaper.
The Fund shall determine the deposits subject to compensation and the amount of compensation payable to each depositor under the conditions and pursuant to the procedure provided for in the Guarantee Fund Act on the basis of the information submitted by the trustee.
Compensation for joint deposits shall be paid to the depositors in equal amounts unless otherwise provided for in the settlement or loan contract. A joint deposit is a deposit which belongs to two or more persons jointly. For the purposes of compensation for a joint deposit, each owner of the joint deposit shall be deemed to be a depositor.
Payment of compensation
Compensation shall be tranferred to the account stated by the depositor or paid in cash on the basis of application of the depositor, through one or several Estonian or foreign credit institutions specified in a resolution of the supervisory board.
Fees relating to the payment of compensation in cash or by bank transfer shall be paid by the depositors unless otherwise agreed upon between the Fund and the credit institution making the payments. If the fee payable by a depositor for payment of compensation in cash or by a bank transfer is higher than or equal to the amount of compensation, the compensation shall not be paid. The fee charged for payment of compensation shall not exceed the ordinary fee charged by the credit institution for similar services.
Compensation for deposits nominated in foreign currencies shall be paid in euros according to the exchange rate of the European Central Bank as at the date on which the deposits become unavailable.
Compensation for deposits seized pursuant to the procedure prescribed by law shall be paid after the entry into force of the corresponding judgment or ruling by a court or any other competent authority.
Term of compensation
Payment of compensation shall be completed within 7 working days after the date on which deposits become unavailable. The supervisory board of the Fund may extend the term for payment of compensation under extraordinary circumstances and with good reason but not for more than 10 working days.
Right of claim for depositor
If the Fund fails to pay compensations within the term specified or pays less compensation than prescribed, the depositor has the right to file a claim against the Fund. The limitation period for filing a claim shall be three years
