Alta banka bankruptcy: what depositors should do

Who is in charge now

The Commercial Court in Belgrade opens bankruptcy on the proposal of the Deposit Insurance Agency (AOD), which then becomes the bankruptcy administrator. Notices on payouts, deadlines and claims are published on aod.rs and in the Serbian media.

The insured EUR 50,000

Insurance covers up to EUR 50,000 per depositor at the bank, counting all of that depositor's insured deposits together, whatever the account type or currency. Dinar deposits are paid in dinars, foreign-currency deposits in euros at the middle rate on the day bankruptcy opens.

Within three working days of the court decision the AOD announces where and how to collect the money, and payment starts no later than seven working days after the decision, through another bank chosen by the AOD. You need an ID, and there is no fee. The right to the insured amount lasts three years from the court decision.

• covered: individuals, sole traders (including flat-rate entrepreneurs), micro, small and medium companies;
• not covered, among others: large companies, state bodies, bearer deposits;
• nationality does not matter, so foreigners living in Serbia are covered too.

Money above EUR 50,000

The part above the insured amount is not paid by the AOD. It has to be filed as a creditor's claim in the bankruptcy, within the deadline set in the notice opening the proceedings. Note that deadline as soon as it is published.

Claims are paid from the bank's estate in the order set by the law on bank bankruptcy. Deposits (other than those of banks and financial institutions) rank ahead of most other creditors, but after some tax claims and claims of the National Bank. How much will be recovered, and when, depends on what the estate realises. Nobody can promise a figure today.

Sole traders, companies and borrowers

A sole trader is insured up to EUR 50,000. If you hold both a personal and a business account at Alta banka, check how the AOD adds them up, because the law refers to the total of one depositor's insured deposits. Open a business account at another bank straight away and send clients your new details.

Bankruptcy does not release borrowers. Keep repaying, following the administrator's instructions. If you have both a loan and a deposit above the limit, ask about set-off before filing your claim.

What to do now

Good paperwork makes both the payout and the claim faster.

• keep statements showing the balance on the day the licence was revoked, plus contracts and cards;
• work out how much of your money is above EUR 50,000;
• watch aod.rs for the paying bank, deadlines and the call for claims;
• if you are abroad, prepare a power of attorney so someone can collect and file for you.

Frequently asked questions