Press Release

31 July 2014

PAYOUTS TO ORGOVÁNY DEPOSITORS HAVE STARTED


The National Deposit Insurance Fund (NDIF) have started to pay compensation to the depositors of Orgovány és Vidéke Takarékszövetkezet today. Indemnities up to HUF 100,000 are delivered to the recipients’ addresses by the Hungarian Post. Between HUF 100,000 and HUF 2.5 million depositors are notified by post about which post office they need to visit to collect the amounts they are entitled to. Private individuals with deposits over HUF 2.5 million and corporate depositors will start receiving the notices from next Monday on.  It is due to the fast processing of the database that NDIF payouts could be started as early as on the fourth working day in parallel with the liquidation of the savings bank. NDIF has to pay over HUF 54 billion in indemnities to more than 30,000 recipients. As much as 15.44% of deposits not insured by NDIF and of deposit portions over the EUR 100,000 threshold will be paid by Takarékbank to the affected depositors in the assigned savings bank branches in accordance with the Act on cooperative credit institutions.

NDIF will pay a total of HUF 54.3 billion to 30,244 depositors of Orgovány és Vidéke Cooperative Savings Bank (hereinafter: the Savings Bank) in indemnities. As many as 87% of the depositors are private individuals, and the average size of deposits kept in the Savings Bank exceeded the national average, and equalled HUF 1.7 million.

The indemnification of 95.9% of the depositors registered in the database has been processed without any problem.

Payouts approved on 29 July 2014 and broken down by the payout methods (for both private individuals and legal entities):

Number of customers

Amount (HUF thousand)

Up to HUF 2.5 million (through the Hungarian Post)

19,555

8,431,655

Over HUF 2.5 million (through Takarékbank, in savings bank branches)

9,444

39,737,133

Total:

28,999

48,168,788

“Since the day access to the deposits was denied we have been working hard with our paying agents, the Hungarian Post and Takarékbank, in order to be able to indemnify our customers as soon as possible, as we promised, well before the legally set deadline of 20 working days,” managing director of NDIF András Fekete-Győr said.

The depositors of the Savings Bank are indemnified in three ways:

· up to HUF 100,000 the postal delivery person will start delivering the amount of indemnification to the depositors’ addresses today.

· between HUF 100,000 and HUF 2.5 million, the postal delivery person will start delivering the notices to the depositors today. The notice specifies the post office where the depositor can receive the amount of indemnification he/she is eligible for.

· over HUF 2.5 million, from next Monday on NDIF will send the depositors a letter specifying the cooperative savings bank branch where they can make arrangements regarding the amount of indemnification they are eligible for.

NDIF will indemnify neither the deposits of the executive officers of the Savings Bank, nor the deposits of their next of kin living in the same household.

Further key figures of indemnification by NDIF

Insured deposits at the Savings Bank in total (interest+ principal):

HUF 59 billion

Including NDIF’s indemnity payment obligation (interest+principal) for deposits worth the HUF equivalent (HUF 30,835,000) of maximum EUR 100,000 (including blocked deposits, items to be investigated and deposits below HUF 500, which cannot be indemnified):

HUF 54.3 billion

Number of insured persons entitled to indemnification: 30,244

Including:

  • Private individuals: 24,993
  • Companies, social organisations (ltds, partnerships, associations, private entrepreneurs, churches, etc.): 4,905
  • Joint ownership communities: 346

Apart from Hungarian citizens, 294 citizens of another 21 countries (Afghanistan, Austria, Belize, United Kingdom, France, the Netherlands, Croatia, Israel, China, Germany, Italy, Romania, Switzerland, Sweden, Serbia, Slovakia, Slovenia, Tunisia, New Zealand, Ukraine, USA) are affected by the indemnification process, claiming a total of HUF 87 million.

The oldest and youngest depositors were born in 1910 and 2012, respectively.

There are 3,204 deposits of less than HUF 500 (which cannot be paid out) worth a total of HUF 516,599.

The number of depositors with deposits exceeding the maximum limit of indemnification of HUF 30,835,000 is 172 (with savings worth HUF 4.2 billion).

The largest individual deposits over the indemnification limit of NDIF:

  • In the case of private individuals: HUF 291 million
  • In the case of companies: HUF 393 million

Tax

Pursuant to the legal regulations in force NDIF will deduct the tax payable on interest income due to private individuals as well as the flat-rate healthcare contribution, and will forward the total of approximately HUF 68 million to the tax authority.

Information supply

NDIF’s customer service telephone number (40-918-918) will be operational day and night until the end of the indemnification procedure. Calls will be charged at a local rate.

Further payouts – deposits of more than EUR 100,000 and uninsured deposits – pursuant to the Act on cooperative credit institutions (Szhitv.)

In the case of deposits insured by NDIF, 15.44% of the portions above the EUR 100,000 (HUF 30,835,000) limit will also be indemnified pursuant to the provisions of Szhitv.  In the case of deposits not protected by NDIF the payout will equal 15.44% of the total deposit claim. These payments are covered from the deposits kept in the Savings Bank, and still covered by liquid assets. Magyar Takarékszövetkezeti Bank Zrt. (Takarékbank) will draw up a detailed payment report on every amount paid, and will send the report to the depositor’s home address (registered address in the case of companies) kept by the Savings Bank in a letter delivered by “return receipt requested” delivery.

Indemnities will be paid out in the assigned savings bank branches. Similarly to NDIF, Takarékbank will deduct the interest tax and flat-rate healthcare contribution payable on interests due to private individuals, and will forward it to the tax authority.

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For further information please contact:

Mr. István Tóth, NDIF, Communication Manager

Mobile: 30-491-2820

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it