Deposit guarantees
Deposit Guarantee Law of the Republic of Latvia stipulates guaranteed compensation to the amount of the deposit (but not exceeding 100,000 EUR) per depositor, if the deposit is not available. Additional compensation up to 200,000 EUR is possible for the following deposits of the private person within the period of three months from the date when the initial deposit was made:
- Income from transactions from the real estate owned by the person and intended for residence;
- Social benefits, compensations and deposits intended for other social purposes as determined by the regulatory enactments paid to the person;
- Compensation for criminal damage or wrongful conviction of the person according to the procedure stipulated by the regulatory enactments.
If the depositor has several guaranteed deposits, they are added up and considered as one guaranteed deposit.
The guaranteed compensation is paid only to those depositors whose claim has been recognised by the liquidator or administrator. Unavailability of deposit occurs upon judgement of the court regarding insolvency of the credit institution and initiation of bankruptcy proceedings. The guaranteed compensation is not paid for certain statutory customer deposits, such as deposits of financial institutions, persons associated with the credit institution, their relatives, etc.
