RIGA - The Latvian finance minister increased the amount to which bank deposits are guaranteed from 20,000 euros to 50,000 euros, according to an Oct. 13 Baltic News Service report. The Latvian finance ministry amended the law in line with decisions made by the European Economic and Financial Affairs Council on Oct. 7.
The limit had previously been set at 20,000 euros on Jan. 1, 2008. The ministry made the move to stave off concerns that depositors might lose their money if a bank were to collapse.
EU finance ministers meeting in Luxembourg decided to increase the insured sum. Latvian Finance and Capital Market Commission spokeswoman Ieva Upleja told BNS earlier that this decision is a political agreement on a united approach in the whole EU.
"There will not be any problems with meeting this requirement in Latvia, as the agreement also provides that each member state can still make its own decision on the most appropriate use of instruments, if necessary," she said.
According to data from the commission, less than 3 percent of deposits in Latvian bank accounts hold deposits over 20,000 euros.
The amendment to the law still has to be adopted by Parliament.