Information for former bank clients

On 15 August 2019, the European Central bank (ECB) as the direct supervisor of AS "PNB Banka" decided to recognize the bank as a failing or likely to fail financial institution. Whereas the European Single Resolution Board has decided not to take resolution of AS "PNB Banka", which means not to take actions to stabilise the bank's operation. Having regard to the above and with a view of protecting the deposits of the bank's clients, the Board of the Financial and Capital Market Commission (FCMC) decided to suspend the provision of financial services to AS "PNB Banka" and declared the unavailability of deposits.

The FCMC has made a decision on the procedure for the guaranteed compensation payments to the clients of AS "PNB Banka" from 22 August 2019, entrusting the disbursement of the guaranteed compensations to AS "Citadele banka". Thus, the disbursement of the guaranteed compensation to the customers of AS "PNB Banka" will be started on the fifth working day following the occurrence of the unavailability of deposits, declared by the FCMC’s decision on 15 August 2019.

In accordance with the provisions of Paragraph four of Section 3 of the Deposit Guarantee Law, the depositors of the insolvent AS PNB Banka, who are eligible for the guaranteed compensation but will fail to receive it by the given deadline, will lose their right to receive the guaranteed compensation as from 16 August 2024.

Latvijas Banka requests the depositors of the insolvent AS PNB Banka, who have not yet received the guaranteed compensation, to take all the necessary steps to receive it by 15 August 2024.

The depositors of the insolvent AS PNB Banka, who have restrictions imposed by a sworn bailiff or the State Revenue Service for receiving the guaranteed compensation by 15 August 2024 (e.g. payment transactions have been suspended or funds in the account – temporarily frozen), will be eligible for the guaranteed compensation, which will be available within five years starting from 16 August 2024.

Meanwhile, the depositors for whom the disbursement of the guaranteed compensation has been deferred pursuant to Paragraph one of Section 27 of the Deposit Guarantee Law, will have an opportunity to receive it when the circumstances underpinning the deferral of the guaranteed compensation cease to exist.

• Depositors of the insolvent AS PNB Banka are requested to receive the guaranteed compensation by 15 August 2024
• Announcement concerning declaration of insolvency proceedings of AS "PNB Banka" and submission of creditor claims or other demands.
• State-guaranteed compensations are paid to clients of AS "PNB Banka" only at the branches of Citadele banka.
• Decision of the European Single Resolution Board on AS PNB Banka.
• Decision of the European Central Bank on AS "PNB Banka".

Hotline for AS "PNB Banka's" clients

+371 67022883, +371 67022882

Questions on the filing of creditors' claims: +371 67041112 (More information at PNB Banka's website)

Latvijas Banka e-mail: info@bank.lv

Frequently Asked Questions and Answers on the procedure for the guaranteed compensation payments.

Pursuant to Section 3, Paragraph four of the Deposit Guarantee Law, the depositors of ABLV Bank, in liquidation, who are eligible for the guaranteed compensation but who have failed to apply for it by 23 February 2023 have lost their right of claim against the Deposit Guarantee Fund of Latvia concerning the disbursement of the guaranteed compensation on 24 February 2023.

The depositors for whom the disbursement of the guaranteed compensation pursuant to Section 27, Paragraph one of the Deposit Guarantee Law has been deferred, it will be available for five years from the moment the circumstances underpinning the deferral of the guaranteed compensation cease to exist.

In addition, we would like to inform the persons concerned that in compliance with Section 19, Paragraph seven of the Deposit Guarantee Law, the restrictions imposed by sworn bailiffs and tax (fees) administration on the disbursement of the guaranteed compensation in relation to a possible recovery of funds has expired as of 24 February 2023. Thus, these depositors will be entitled to apply for the guaranteed compensation for the next five years as of 24 February 2023.

Disbursement of the guaranteed compensation is provided by AS "Citadele banka". More information on the procedure for application is available on its website.

More information – in the announcement of the Financial and Capital Market Commission.

Hotline for AS "ABLV's" clients on the receipt of the guaranteed compensation

ABLV phones for contacts: +371 67775555, +371 67775222
ABLV e-mail: info@ablv.com

Latvijas Banka phones for contacts: +371 67022882, +371 67022883

Latvijas Banka e-mail: info@bank.lv

At its meeting on 4 March 2016, the Board of the Financial and Capital Market Commission established the unavailability of deposits at AS "Trasta komercbanka" as based on the decision of the European Central Bank its banking licence was revoked on 3 March 2016.

Pursuant to Section 3, Paragraph four of the Deposit Guarantee Law, the depositors of AS "Trasta komercbanka" who are eligible for the guaranteed compensation but who have failed to apply for it by 3 March 2023 have lost their right of claim against the Deposit Guarantee Fund of Latvia concerning the disbursement of the guaranteed compensation on 4 March 2023.

In accordance with Section 19, Paragraph five of the Deposit Guarantee Law, if, within five years from the day the deposits become unavailable, a sworn bailiff or tax administration (the State Revenue Service) has not applied recovery of financial means of a depositor, the restrictions imposed by the sworn bailiff or tax administration on the disbursement of the guaranteed compensation shall terminate. Therefore, depositors of AS "Trasta komercbanka", who had restrictions imposed by the State Revenue Service or a sworn bailiff for receiving the guaranteed compensation until 3 March 2021 (e. g., any payment transactions suspended or funds in the account temporarily frozen), will be eligible for the guaranteed compensation, which will be available within five years, i.e. until 3 March 2026.

More information on the procedure for payment of guaranteed compensations is available by contacting Latvijas Banka by telephone.

Latvijas Banka phones for contacts: +371 67022882, +371 67022883

Latvijas Banka e-mail: info@bank.lv

Liquidator of the bank: certified administrator of insolvency proceedings Armands Rasa
Address: Kr. Valdemāra iela 33 -35, Riga, LV-1010
Phone: +371 67280685
Fax: +371 67280603
E-mail: tkb@readvokati.lv

Informative telephone of LAS "Trasta komercbanka": +371 67027777.

In accordance with the adopted amendments to the Deposit Guarantee Law, which entered into force on 14 June 2014, depositors may receive the guaranteed compensation provided for in Section 3 within five years from the day when the unavailability of deposits at the credit institution occurred. That provision has no retroactive effect, therefore the time limit for receiving the guaranteed compensation with a view to protect the interests of depositors shall be calculated from the date of entry into force of the respective amendments.

Taking into account the provisions of Section 3, Paragraph four of the Deposit Guarantee Law, from 13 June 2019, depositors of AS "Latvijas Krājbanka" in liquidation, who were eligible for the guaranteed compensation but have not received it, have lost their right to receive the guaranteed compensation.

In accordance with Section 19, Paragraph five of the Deposit Guarantee Law, if, within five years from the day the deposits become unavailable, a sworn bailiff or tax administration (the State Revenue Service) has not applied recovery of financial means of a depositor, the restrictions imposed by the sworn bailiff or tax administration on the disbursement of the guaranteed compensation shall terminate. Therefore, depositors of AS "Latvijas Krājbanka", who had restrictions imposed by the State Revenue Service or a sworn bailiff for receiving the guaranteed compensation until 13 June 2019 (e. g., any payment transactions suspended or funds in the account temporarily frozen), from 13 June 2019, are eligible for the guaranteed compensation, which will be available within five years, i.e. until 12 June 2024.

Information for minor depositors of LAS "Latvijas Krājbanka" regarding the disbursement of the guaranteed compensation

Taking into account the amendments to the Deposit Guarantee Law of 27 May 2021, where, in accordance with Paragraph 15 of the Transitional Provisions, depositors who on 14 June 2014 were entitled to receive the guaranteed compensation due to the occurrence of unavailability of deposits at the deposit taker (LAS "Latvijas Krājbanka"), but who have not received it because they were minors, will lose their right to claim against the Deposit Guarantee Fund the disbursement of the guaranteed compensation on 31 December 2029.

Amendments to the Deposit Guarantee Law stipulate that, in accordance with the decision of the Financial and Capital Market Commission on the way and procedure of the disbursement of the guaranteed compensation, the guaranteed compensation of a minor depositor may be transferred to an account opened in the name of the minor depositor with another deposit taker provided that the conditions for the use of the existing funds of that deposit taker are similar to those defined by the deposit taker with the established unavailability of deposits.

Depositors of LAS "Latvijas Krājbanka", who were minors on 14 June 2014, may receive their guaranteed compensation by applying to the joint stock company "Citadele banka".

Taking into account the amendments to the Deposit Guarantee Law, a guaranteed compensation may be disbursed to a minor depositor in three ways.

• The minor depositor, having reached 18 years, himself/herself may apply to the joint stock company "Citadele banka" by presenting a personal identification document (passport).
• The legal representative of a minor depositor (parent, guardian) may submit an application to the joint stock company "Citadele banka" to transfer the guaranteed compensation to an account opened in the name of the minor depositor with another deposit taker provided that the conditions for the use of the existing funds of that deposit taker are similar to those defined by the deposit taker with the established unavailability of deposits. In this case, it is necessary to present an agreement with another credit institution regarding the opening of the account to verify the compliance of the opened account with the requirements stipulated by the law.
• Transferring of the guaranteed compensation to an account opened in the name of another person may be made by decision of the custody court.

In case of uncertainty, the bank’s former clients and creditors are invited to contact "KPMG Baltics", the administrator of LAS "Latvijas Krājbanka" by:
phone: +371 67104050,
e-mail: kpmg@lkb.lv.

This explanation is intended for customers of liquidated banks who have previously received and repaid a bank loan, but whose real estate or movable property subject to registration, such as a car, has remained encumbered with a mortgage, pledge, or prohibition on alienation (hereinafter collectively referred to as "encumbrance") in favour of the liquidated credit institution.

Latvijas Banka draws attention to the fact that, in case a credit institution has been liquidated and no longer exists, there is no person available to provide the credit institution's consent to discharging the encumbrance and removing it from the Land Register or any other public register. Furthermore, a liquidated credit institution has no successor to its rights and obligations or representative authorised to take any actions to discharge encumbrance on its behalf.

What steps should a customer of a liquidated credit institution take?

A customer of a liquidated credit institution should seek relief through a general jurisdiction court to discharge such encumbrance. The person – the owner (or their heirs) of the encumbered real estate or movable property – has to personally take the case to the general jurisdiction court as outlined in Chapter 38 of the Civil Procedure Law and submit an application for summoning procedures regarding extinguishing of rights.

The aforementioned Chapter of the Civil Procedure Law stipulates the procedure for extinguishing rights through summoning procedures. This enables the court, based on the person's application and accompanying evidence, to establish that the person in whose favour the encumbrance has been imposed no longer exists. If no person claims their rights or raises objections within the specified period outlined in the summons, the court can decide on whether the request to discharge the encumbrance is well-founded.

Latvijas Banka points out that there is no basis for recognising Latvijas Banka as an interested party in such legal proceedings. When deciding on whether the person's obligations vis-à-vis the liquidated credit institution have been fulfilled, the legal interests safeguarded by Latvijas Banka in the execution of its statutory tasks remain unaffected. In such cases, Latvijas Banka has neither direct material nor any other legal interests that would justify its recognition as an interested party.

Credit Register data

In addition to the documents held by the person and proving the repayment of the issued loan, the Credit Register data can serve as additional evidence demonstrating the fulfilment of obligations to the court. At the same time, we would like to emphasise that, in accordance with Section 6 of the Law on the Credit Register, the data entered in the Credit Register are of informative nature, and they do not prove the existence or non-existence of obligations of customers and their guarantors, or their violations. Therefore, the use of the Credit Register data as evidence has limitations.

This explanatory material has been prepared by Latvijas Banka. Latvijas Banka does not provide legal advice on civil matters.

To obtain further and more precise information and to find solutions tailored to each specific situation, we advise seeking legal aid from legal practitioners or sworn lawyers specialising in civil justice.