NDIF to pay HUF 8.1 billion in the next few days
The National Deposit Insurance Fund has completed processing the data of Jógazda Cooperative Savings Fund, whose licence has been withdrawn by the financial authority. The actual amount of the NDIF compensation payable to depositors will be determined after the credit institution’s customer data are processed and the consolidation of data relevant to individual depositors (aggregation of the principal and interest amounts held by the protected depositor in deposits and current accounts under NDIF protection) is completed.
“The first, critical IT-related stage of compensation has come to an end, which should have been performed by Jógazda pursuant to the relevant legislation, and the consolidated depositor data should have been transferred to the NDIF within five days following the closure. We had to invest intensive efforts in order to establish the accurate HUF amounts legally due to each individual depositor affected, so that we can comply with the twenty-day payment period. In possession of the data, the NDIF is going to start refunding the depositors within days, using the methods described”, said Director of Communication István Tóth.
Compensation to depositors of Jógazda is paid in one of three ways:
By funds transfer – Private individuals were allotted time till 10 January to indicate if they intended to receive their refunds to a bank account held with another credit institution in Hungary. This payment method is irrespective of the sum. In the absence of such indication, depositors will be assigned to one of the following two categories.
For companies (including individual entrepreneurs), a facility remains valid without a time limit to state a bank account where they wish to receive their refunds from NDIF, with their authorised signatures displayed as specified in Jógazda branches.
Via the post office – Up to HUF 1 million, indemnification is performed using a postal voucher; up to HUF 100,000, it is delivered by a postman, above that, the customer can receive the money in the post office. The NDIF sends information about the amount of compensation in registered mail with proof of delivery.
Via NDIF card – Above HUF 1 million, indemnification is performed via NDIF Deposit Insurance cards. The NDIF mails the Deposit Insurance card, which is similar to a bank card, as well as the letter of information on indemnification and the letter containing the PIN code in three separate letters to the affected customers. The amount of compensation from the Deposit Insurance card can be withdrawn in post offices and in the branches and ATMs of OTP Bank.
Major data of NDIF compensation to Jógazda Savings Fund
Total deposits of the Savings Fund (principal + interest): HUF 9.8 billion
Of which NDIF’s refunding obligation payable (including blocked deposits) (principal + interest): HUF 8.5 billion
Number of depositors insured and entitled to indemnification: 5,457
Private individuals: 4,546
Collective deposits: 20
Distribution of private individuals by compensation method
Compensation to be paid by funds transfer (total: HUF 6.1 billion)
Private individuals submitting their request for funds transfer until 10 January: 1,826 (compensation amount: HUF 4.9 billion).
Businesses: 1,119 (HUF 1.1 billion)
Collective deposits: 20 (HUF 42 million)
Private individuals to be compensated via the post office: 1,952 (HUF 443 million)
Private individuals to be compensated via NDIF Deposit Insurance card: 520 (HUF 1.5 billion)
According to effective legal regulations, the NDIF deducts the interest tax generated on interest due to private individuals, and transfers it to the tax authority. Total tax on interest income deducted from 4,527 private individuals entitled to NDIF compensation: HUF 24 million.
The oldest NDIF depositor indemnified is 92 years old, the youngest one is 6 years old.
Average age of private individuals indemnified by the NDIF: 52 years.
The oldest deposit was made in 1985.
Indemnification of Jógazda depositors by the NDIF affects citizens of 16 different countries. Depositors are mostly Hungarians, but also include 10 Slovakians, 9 Romanians, as well as Israeli, Chinese, Bulgarian, French, English and Albanian citizens.
The private individuals receiving NDIF compensation are residents of 290 towns; they live in the following towns in largest numbers:
Kecskemét: 1,261 persons
Gönc: 789 persons
Hidasnémeti: 451 persons
Novajidrány: 428 persons
Budapest: 381 persons
Moreover, the distribution of depositors by residence is not limited to the area of Jógazda branches, as there are depositors also from Komárom, Sopron, Pécs, Leverkusen, München, Los Angeles, Hong-Kong and Singapore.
Average size of Jógazda deposits: HUF 1.5 million
Compensation amounts below HUF 5000 not payable by law: HUF 84 thousand
Anonymous deposits with no identifiable owners: HUF 13.5 million
Key data on deposits excluded from compensation by the NDIF
Number of deposits that exceed the NDIF’s compensation limit, i.e. the HUF equivalent of EUR 100 000: 19 (reaching an aggregate amount of HUF 350 million)
Highest individual deposit amounts above the NDIF’s compensation limit (“lost”):
Private individuals: HUF 90 million
Businesses: HUF 59 million
Total amount of items not insured by the NDIF, excluded from deposit insurance pursuant to section (1) of article 100 of the Act on credit and financial institutions: HUF 364 million.
Number of local governments: 13 (amount: HUF 59 million)
Highest amount of deposit owned by a local government not compensated for by the NDIF (”lost”): HUF 29 million
Number of credit institutions: 3 (amount: HUF 252 million)
Deposits insured by other than the NDIF, deposited before 1 July 1993 (effective date of the NDIF insurance), with a continued state guarantee as of prior to 1993: 186 items (amount: HUF 43.5 million).
May we call the attention of press employees that in addition to the above data we can only meet further statistical requests concerning compensation of depositors of Jógazda Takarékpénztár (Savings Fund) to a limited extent. In the current stage of compensation, the entire staff of the NDIF is working on the financial preparations of payments. Thank you for your understanding.