ANNOUNCEMENT

 

In its resolution No. H-JÉ-I-317/2014 the National Bank of Hungary revoked the operating licence of ALBA Cooperative Savings Bank (registered office: 8000 Székesfehérvár, Táncsics Mihály u. 2.) and the court has ordered its liquidation. Consequently, pursuant to Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises (Hpt.) NDIF will start the indemnification of depositors on 18 September 2014, and will complete the process within 20 working days.

Amount of indemnification

Pursuant to the above Act, NDIF will make personalised payments on deposit and interest claims calculated up to 17 September 2014 in the amount of maximum HUF 31,396,000, i.e. the HUF equivalent of maximum EUR 100,000 per person. Conversion will be carried out at NBH’s foreign exchange rate valid on 17 September 2014.

Customers do not need to submit a claim for indemnification. Payments will be based on the personal details (names, addresses, etc.) and corporate details kept in the database of the savings bank, as well as on the details available on the deposits held. Please note that NDIF will send indemfincation related notices to each depositor’s permanent address kept on file in the savings bank, and not to other addresses that may be registered. Any change in the residential address can only be reported in the branches of ALBA Cooperative Savings Bank with a proof of identification.

Payment report

NDIF will draw up detailed payment reports on the amounts of indemnification, and will send such reports to the depositors by post by “return receipt requested” delivery.

Methods of payment

For private individuals

§ up to HUF 100,000 in cash through the postal delivery person.

§ between HUF 100,000 and HUF 2.5 million the amounts can be withdrawn with a postal order at the assigned post office.

§ over HUF 2.5 million customers can receive or make further arrangements about the amounts they are entitled to in person, in the assigned savings bank branch. NDIF will notify the depositor in detail about the actions he/she needs to take in connection with the withdrawal of the amount of indemnification in the letter attached to the payment report on the amount to be paid. In the same letter NDIF will also specify which savings bank branch will act as the paying agent.

For legal entities

§ Independent of the amounts concerned, legal entities, other organisations and private entrepreneurs can receive the amounts of indemnification they are entitled to after receiving the payment report and the attached information letter sent by post, in the assigned cooperative savings bank branch.

For cash security purposes we advise that you deposit your indemnity in the given branch, or have it transferred to a current account kept in any Hungarian credit institution. We hereby strongly advise our customers that keeping large amounts of cash may pose a security risk, therefore they should exert caution.

If the holder of the deposit, the person entitled to indemnification, has in the meantime passed away, and the heirs have not yet notified the Cooperative Savings Bank about the death, please call NDIF’s customer service line (06 (40) 918-918) for further arrangements. In case of child welfare agency deposits the guardians/custodians must also call the above number.

During the indemnification process the amount deducted by the savings bank due to overdue debt will not be paid to the customer.

Indemnities are also subject to the effective laws on taxation, therefore NDIF must deduct the interest tax and the flat-rate healthcare contribution from the interest to be paid.

In connection with deposit claims that exceed HUF 31,396,000 or that are not insured by NDIF (see Section 213 of Hpt.) a creditor’s claim can be filed with the Financial Stability Institute (Pénzügyi Stabilitási és Felszámoló Nonprofit Kft.). For information please visit http://www.psfn.hu/ or call +36 (1) 321-0116.

For further information please visit NDIF’s website (www.oba.hu), call the customer telephone line at +36 (40) 918-918, or visit the branches of ALBA Cooperative Savings Bank.

National Deposit Insurance Fund

 

Budapest, 18 September 2014