In Latvia, the increased guarantees on bank deposits to 100,000 euros

Performing EU Directive, from January 1 this year, Latvia has twice raised the state guarantee for bank depositors. Henceforth, any client of the Latvian bank in the event of insolvency of the state receives from 100 000 euro instead of 50,000, or if its contribution is less than this limit - the entire deposit amount. These changes have been made in the Act on Deposit Guarantees and distributed completely to all customers of Latvian banks - individuals and legal entities, residents and non-residents. Compensation of 100 thousand euros is provided for contributions to any Latvian bank. EU Directives define the level of state compensation of bank deposits in member countries of the alliance. In the past few years, Latvia consistently raised the ante to 15 thousand euros in 2006 to 50,000 in 2008 and, finally, to today's 100,000. Latvian bankers assess this fact as an additional plus for the reputation of the country's financial system. "Despite the current difficult situation with the budget, our government has decided to double the amount of guarantees. This speaks to the responsibility of the authorities and the stability of the financial industry, which is on the verge of new growth. Rates in Latvian banks by the standards of the EU is very good, and given the high level of state guarantees, we should expect an influx of new deposits ", - said Alexander Pankov, president of the bank Rietumu, who two years ago led the top profitable banks in the country. Until now, Latvia has not had to resort to the mechanism goskompensatsy - country's banking system is robust enough, and experts predict that promises to be one of the flagships of the local economy. The only actually went bankrupt in late 2008, Parex Bank was rescued by the state, is divided into "good" and "bad" part and continues to operate under state management. Source: bankir.ru