The Lithuanian Deposits and Investments Insurance Fund has decided that the Citadele Bank will be entrusted with the payment of Lithuanian state guaranteed compensations to individual clients from the Latvian branch of the Snoras Bank, while legal entities will be able to receive compensation from AS UniCredit Bank.
“We very much welcome the fact that the Lithuanian Deposits and Investments Insurance Fund has entrusted the Citadele Bank with the payment of compensation to individual clients from the Latvian branch of the Snoras Bank. In technological terms, we are prepared to start paying that compensation to residents. We will announce the date upon which we will start this process once we receive a client register from the Lithuanian Deposits and Investments Insurance Fund which shows the amount of money that each client is to receive, and once we have access to financing from the fund. We would like to call on people to monitor information about this on the Citadele homepage,” said Citadele board chairman Juris Jākobsons.
The board chairman said that it is already clear that the clients of the Snoras Bank branch in Latvia, like clients of Latvijas Krājbanka, will be able to receive the compensation in cash or in the form of a transfer to an account at Citadele or any other bank. Those clients who use Citadele online banking services will be able to file instructions on payment via online banking. Those who do not use Citadele online banking will have to visit bank headquarters at Republikas Square 2A in Rīga, and they must bring along their passport for identification purposes.
Compensation to the clients of the Snoras Bank branch in Latvia will be paid from the Lithuanian Deposits and Investments Insurance Fund, or “Indeliu ir Investiciju draudimas.” The financing will be kept off the Citadele books, which means that the compensation will not depend on Citadele operations and vice versa. The bank is simply an instrument which will ensure the payment of compensation to depositors.
Snoras clients in Latvia will be able to receive guaranteed compensation up to EUR 100,000 (LVL 70,000). As is the case with Latvijas Krājbanka clients, Snoras clients will be able to receive their compensation only in lats and only through a single payment.
Lithuanian law states, that the right of clients to receive compensation remains in place for five years.