Serbia revokes license of bank popular among Russians
ALTA banka, where many Russians who moved to Serbia opened accounts, has lost its license. Depositors are being prepared for insurance payouts of up to 50,000 euros, but the start of the payout period is tied to a court decision on bankruptcy.
The National Bank of Serbia announced the license revocation on October 31. According to the regulator's assessment, ALTA's financial position had significantly deteriorated, and the risk of further deterioration of its financial condition or liquidity threatened the interests of depositors. Prior to the license revocation, the regulator conducted supervisory measures aimed at improving the bank's liquidity.
For Russian emigrants, ALTA was one of the accessible banking options. As DW reports, the bank opened accounts for non-residents, so it was used by Russians who moved after the start of Russia's full-scale invasion of Ukraine. The publication does not provide exact data on the share of Russian citizens among clients.
According to DW, citing the Serbian publication Danas, even before the license revocation, ALTA was disconnected from the instant payment system. The restrictions affected the ability to send and receive transfers.
The Serbian Deposit Insurance Agency will handle the return of insured funds. The right to compensation is provided for individuals, entrepreneurs, micro, small, and medium-sized companies. The limit is 50,000 euros per depositor per bank, not per individual account. Coverage includes not only term deposits but also funds in current, savings, and other insured accounts.
An important detail is the payout timeframe. The Agency must begin payouts no later than seven working days after the Commercial Court in Belgrade issues a decision to open bankruptcy proceedings. This is not a promise to return all money a week after the license revocation is announced.
The Agency has committed to publishing the conditions, locations, and deadlines for receiving insured amounts on its website and in the media no later than three working days after the court decision. According to the Agency's director, Ljubica Pantelić, as quoted by RTS, payouts will be organized through another bank; its name will be announced separately.
Funds in dinar accounts will be reimbursed in dinars, and foreign currency accounts in euros. For deposits in other foreign currencies, conversion at the average exchange rate of the euro to the relevant currency on the day the bankruptcy proceedings are opened is provided.
Claims for amounts exceeding the insurance coverage will be considered separately within the bankruptcy proceedings. The regulator promised to announce the procedure for filing them. At the same time, the license revocation does not cancel debts to ALTA: borrowers retain their obligations and should receive instructions on further loan repayment.
Source materials: National Bank of Serbia on license revocation, NBS on rights of depositors and creditors, Deposit Insurance Agency, RTS, DW
Photo: Andrey Romanenko / Wikimedia Commons, license CC BY-SA 4.0. Archive photo from August 31, 2024.
