Lenders Refund Rest of Contribution to Cover Sberbank Depositor Comp

Banking

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The board of Hungary's National Deposit Insurance Fund (OBA) has decided to refund the rest of a HUF 73.5 billion one-off contribution lenders paid to cover compensation for depositors at failed Russian-owned Sberbank Magyarország, the National Bank of Hungary (MNB) said on Tuesday, according to a report by state news wire MTI.

OBA's board decided to refund banks close to HUF 29.5 bln by the end of March. OBA earlier refunded the banks HUF 44 bln of the contribution.

MNB noted that OBA paid compensation of HUF 141.6 bln to Sberbank Magyarország depositors, up to the EUR 100,000 coverage threshold, after the bank's failure amid international sanctions against Russia. 

The central bank said Sberbank Magyarország's liquidator, PSFN, has repaid the bank's former retail, microbusiness, and SME clients a total of HUF 79.9 bln in compensation over the OBA coverage threshold and expects to transfer a further HUF 2.6 bln to the depositors. PSFN has also paid other depositors HUF 134.8 bln in compensation and expects to transfer a further HUF 1.1 bln to them.

Altogether, former Sberbank Magyarország clients have been paid 98% of their deposits over the OBA coverage threshold, MNB said.

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