At the end of last month, due to the deterioration of Sberbank's CZ liquidity situation, the Czech National Bank decided to revoke its banking license. According to official statements, the situation was caused by a significant deposit withdrawal after the escalation of the Russian-Ukrainian conflict. The decision to revoke the banking license was made on 28 February 2022.
In the current situation, the bank is unable to meet its obligations, but they don’t expire. The obligations of clients do not expire either so the obligation to repay them, which also applies to mortgages. Since the deposited are insure, Sberbank clients will not lose their money; the Financial Market Guarantee System will take care of the compensation.
The maximum amount of compensation per depositor is EUR 100,000, ie CZK 2,499,500. In specific cases, the client can request the payment of increased compensation, up to a maximum of EUR 200,000. It is possible to apply for the payment of basic deposit compensation for a period of three years. Komerční banka was entrusted with the payout of insured deposits. Detailed information can be found on the websites of Komerční banka and the Guarantee System.
If you have a mortgage loan arranged in Sberbank, it is necessary to continue repaying in full amount of monthly installment. What can be done with such a mortgage? Currently, the following options are offered in particular:
- Refinance the mortgage to another bank under current market conditions.
- Sberbank's obligations will be taken over by onother bank and the mortgage will be repaid to the new bank.
- Early repayment of the remaining loan amount.
If you are considering refinancing a mortgage loan and you would like to get an experienced mortgage specialist who will help you with the whole process, then do not hesitate to contact us HERE.