Money from a bankrupt bank, recouped after 20 days

The deadline for paying compensations to deposit holders of a bank undergoing liquidation will be shortened from three months (more than 60 working days) from the start of the bankruptcy proceedings as of the end of next year, according to the Banking Deposits Guarantee Fund, the institution that guarantees deposits of 34 banks on the Romanian market. “As of December 31st 2010, the term for the Fund to start awarding compensation will be reduced to 20 working days,” reads a document of the institution. Deposit holders will also have to be informed on the duration and on the means of payment within 10 days from the same date. At present, the data must be published on the Fund’s website and in at least two newspapers with national circulation within 30 calendar days (21 working days) by the credit institution that entered bankruptcy proceedings and by the credit institution in charge of paying the compensations. The deposit guarantee limit is 50,000 or the equivalent sum in RON, as of July this year, whilst previously the limit was 20,000 euros.