Austrian regulator confirms deposit guarantee pay-out for clients of Sberbank Europe
Following an instruction by the European Central Bank (ECB), the Austrian Financial Market Authority (FMA), in an emergency administrative decision dated 01.03.2022 pursuant to Article 70 para. 2 no. 4 of the Austrian Banking Act (BWG; Bankwesengesetz), has prohibited Sberbank Europe AG, with its registered office at Schwarzenbergplatz 3, 1010 Vienna, from continuing business operations with immediate effect.
As a consequence of this decision, an official payment stop was also imposed on covered deposits, meaning in particular that no further deposits, withdrawals or credit transfers are possible and that the deposit guarantee pay-out event as defined in Article 9 of the Deposit Guarantee Schemes and Investor Compensation Act (ESAEG; Einlagensicherungs- und Anlegerentschädigungsgesetz) has therefore been triggered. Pursuant to Article 8 para. 1 ESAEG, Sberbank Europe AG is a member institution of Einlagensicherung AUSTRIA Ges.m.b.H.
Pursuant to Article 13 para. 1 in conjunction with Article 59 no. 8 lit. c ESAEG, a deposit guarantee facility must repay every depositor of a member institution an amount that is equal to the depositor’s covered deposits within ten working days following the occurrence of the pay-out event at one of its member institutions.
Under Article 7 para. 1 no. 5 ESAEG, covered deposits shall mean eligible deposits (e.g. credit balances on current accounts, salary accounts, student accounts and pension accounts, or deposits held in savings books and saving accounts) up to an amount of EUR 100,000, or the equivalent amount in a foreign currency per depositor at a member institution, as well as temporarily covered deposits pursuant to Article 12 ESAEG.
Einlagensicherung AUSTRIA Ges.m.b.H is already in contact with Sberbank Europe AG and is currently preparing the handling of an orderly pay-out.