By means of Law No. 07/IX/2017, of 27 January 2017, the Deposit Guarantee Fund (“DGF”) was set out. According to this statute, the participation and contribution for the DGF is mandatory and automatic for all credit institutions authorized to receive deposits and subject to the supervision of the Banco de Cabo Verde (“Participating Institutions”).
DGF’s purpose is the reimbursement of deposits held with Participating Institutions in case of intervention or extrajudicial winding-up or acknowledgment of a Participating Institution's bankruptcy by the Banco de Cabo Verde. The maximum guaranteed amount of the global balance amount in cash of each holder is 1,000,000$00 (corresponding roughly to € 9,000.00).
The law specifically describes the deposits guaranteed by the DGF, as well as those that are expressly excluded. The amount of the initial and periodic contributions of each Participating Institution, as well as the criteria and pro rata categories of the contributions, shall be subsequently set forth by the Banco de Cabo Verde by means of an order.
The law shall enter into force on 27 April 2017, thus the aforementioned order must be gazetted on or before said date.
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