The Financial Market Guarantee System received the Czech National Bank Notification on the inability of Československé úvěrní družstvo to meet its obligations to entitled persons. The payout of deposit compensation will start within seven (7) business days.

Prague, August 2, 2021 – On August 2, 2021, the Financial Market Guarantee System received¹ the Czech National Bank Notification on the inability of cooperative credit union Československé úvěrní družstvo v likvidaci (hereinafter “ČSÚD”) to meet its obligations to entitled persons under legal and contractual conditions. The Guarantee System immediately requested the liquidator of ČSÚD to submit the necessary documents for the payout of deposit compensation. The expected payout amount is approximately CZK 50 million.

The Guarantee System will now pay the basic deposit compensation from the Deposit Insurance Fund to natural and legal persons who were depositors of ČSÚD as of August 2, 2021 (the record date), up to 100% of the sum of their deposits, but no more than CZK 2,547,500 per depositor (an amount equivalent to EUR 100,000 at the exchange rate of CZK/EUR 25.475 published on August 2, 2021).

By August 10, 2021 at the latest, the Guarantee System will set the start date, place and method for the payout of compensation. This information will be provided to the depositors of ČSÚD via the Guarantee System’s website and through the media. In addition, before starting the payouts, the Guarantee System will send an information letter to everyone entitled to receive compensation containing information on the compensation payout method and on the compensation amount to which such person is entitled.

The Guarantee System must commence the payout of basic compensation for deposits no later than seven (7) business days from the record date, i.e. no later than August 11, 2021.

Payout will be performed by Komerční banka

The clients of ČSÚD will receive their payments through branches of Komerční banka, a.s., with which the Guarantee System has signed an agreement on handling the deposit compensation payout. A list of branches where the deposit compensation payout is to take place will be shown here before the start of the payout. The payout of compensation will take place over a period of three years from the commencement of the payout of the relevant type of compensation (basic or increased).

For the purpose of the basic compensation payout, the clients of ČSÚD need not to complete any form. All they have to do is to produce a valid identity document at a branch of Komerční banka and, in the case of natural persons who are entrepreneurs, their business licence. For the purpose of the payout of deposit compensation to legal persons, it is necessary to produce the original, an officially certified copy or an electronically signed valid extract from the Commercial Register or other public register not older than three (3) months, and an identity document for the individual representing such legal person. Non-cash payout of compensation by correspondence is also possible – send a written instruction (a completed “Compensation Transfer Request” form) with an officially certified signature by mail to: Komerční banka, a.s., CKB department 2192, Václavské náměstí 42, Prague 1, postcode 114 07.

There may be situations where a depositor cannot collect their deposit compensation in person. In such cases, the depositor may authorize someone else to collect the payout by granting a power of attorney – a sample power of attorney, a sample form to help with the completion of the “Compensation Transfer Request” form, and a complaint form can all be found here.

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¹ in accordance with Section 41d of the Act on Banks, No 21/1992, as amended

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