One year since the commencement of ČSÚD payouts: Over 96 percent of insured deposit compensation has been paid out

Prague, 11 August 2022 – The payout of deposit compensation to clients of Československé úvěrní družstvo was commenced one year ago. Since then, the Guarantee System has paid out over CZK 50 million to 64 clients of the cooperative.

The payout related to Československé úvěrní družstvo is one of the smallest payouts of insured deposits provided by the Guarantee System in terms of the amount paid and the number of clients. “There are a total of 541 cooperative clients, to whom a total of CZK 52.3 million is to be paid,” says Renáta Kadlecová, Financial Market Guarantee System Managing Director.

Around CZK 2 million is still left to be paid out. “The clients of the cooperative entitled to the payout of deposit compensation include a large number who had small balances from already closed accounts at ČSÚD. It is not uncommon for such clients not to come to collect the payout of deposit compensation. It is simply not worth it for them to go to a branch of the paying bank for a payout of only a few crowns,” Renáta Kadlecová explains. Such uncollected funds will remain in the Guarantee System and will be used for other deposit compensation payout.

The payout of deposit compensation for Československé úvěrní družstvo v likvidaci will continue for three years from its commencement, i.e. to 11 August 2024. To receive their compensation, clients of the cooperative can go to selected branches of the paying bank, Komerční banka, a.s.

In order to claim the payout of basic compensation for an insured deposit, it is not necessary to fill in anything, or to report to or register with the Guarantee System. All you have to do is submit a document at a branch of the paying bank proving your entitlement to collect the compensation, and choose the account onto which you want the deposit compensation to be transferred, or indicate that you want the compensation to be paid out in cash. All ČSÚD clients entitled to the payout of compensation for insured deposits have received a registered letter from the Guarantee System with precise instructions and the amount of their insured deposits at the cooperative.

Deposit insurance applies to all deposits, as well as to interest on deposits calculated as of the record date (2 August 2021). However, if the interest was paid by the cooperative credit union to the depositor for the entire period of the deposit in advance when the deposit was set up, compensation will not be provided for such interest, and the deposit principal will be reduced by the amount of interest already paid, which would otherwise accrue only after the record date (2 August 2021).

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