All guaranteed deposits of up to EUR 50.000 in Atlas and IBM Bank are safe and they will be paid to clients after the moratorium imposed by the temporary administration of the Central Bank (CBCG) expires, Governor Radoje Žugić said today.
He said that apart from salaries, pensions and social benefits and damages related to health, there will be no other payments, because if they allowed that, additional problems would be created.
"We think that these measures will give the banks a chance to recover. The moratorium is in the shortest possible time. Very soon we will have the situation and a cross-section of the basic parameters of these early banks," said Žugić at the press conference.
He said that the situation in Atlas and IBM Bank did not affect the rest of the banking sector and that all other banks are stable.
Žugić explained that 87.000 clients in the two banks where the CBCG introduced temporary administration have guaranteed deposits of up to 50.000 euros, while 560 clients have exceeded that level.
"The goal of the interim administration is to protect this second part of the depositors in an attempt to heal the bank, that is, on the micro aspect, the goal of the interim administration is to protect the bank's depositors and creditors. The interim administration is a corrective measure to try to recover these banks and get them back on a healthy track. This measure does not means bankruptcy or liquidation, but the intention to recover the two banks. We think that these measures will give the banks a chance to recover. The moratorium is in the shortest possible time." Žugić said at the press conference.
He explained that the crisis has no effect on the rest of the banking sector, which is stable, highly liquid and adequately capitalized, and that Atlas and IBM have slightly more than six percent of the total system. Žugić said that during the moratorium, all aspects of these banks will be agreed upon and that they will quickly have a state and cross-section of the basic parameters of these vulnerable banks.
"With the moratorium, all payments have been suspended, except for salaries, pensions and social benefits. We will create a working group for some alarming situations if something happens so that people who have their deposits are not left without treatment and some basic living conditions. We understand that there are legal entities that owe money to the state, but if you have all the money in one bank, then it's a risk diversification problem," said Žugić.
According to him, the temporary administration will first offer recapitalization to the existing owners, and then to others who show interest. The governor believes that there will be no extension of the moratorium after 45 days, because it would create additional disorder on the financial market.
Žugić explained that in the last two years, they have been conducting monitoring on a daily basis, which, along with additional measures, has produced new capital of 11,3 million euros, assets of 35 million and securities in the nominal amount of 17 million.
"Through our measures, we have significantly improved our work, but there are two extreme cases where the guarantee falls in the amount of 15,2 million, which has a slightly negative impact on capital and solvency. The second case is the blocking of 63 million euros by the competent authorities. Those two cases are led to the introduction of a temporary administration," explained Žugić.
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