BUDAPEST, March 2 (Xinhua) -- The Hungarian central bank MNB has revoked the activity license of the local branch of Russia's largest bank Sberbank and ordered its liquidation due to the latter's serious liquidity and capital position.
The National Deposit Insurance Fund is guaranteeing 100,000 euros (about 110,870 U.S. dollars) within 10 days for all eligible customers, the MNB said in a press release Wednesday.
Sberbank Hungary has entered a serious solvency and capital position due to negative effects of the Russia-Ukraine crisis on Vienna-based Sberbank Europe AG, parent company of Sberbank Hungary, and its owner, the Russian Sberbank, which has been hit by international sanctions.
"In the situation arising from the declaration of insolvency of the parent company, MNB also revoked the activity license of Sberbank Hungary Ltd, and initiated its liquidation," MNB said.
This came after the Single Resolution Board (SRB) opened a liquidation of Sberbank Europe AG.
"Following the European Central Bank's assessment, the Single Resolution Board has today decided that Sberbank Europe AG in Austria and its subsidiaries in Croatia (Sberbank d.d.) and Slovenia (Sberbank banka d.d.) are failing or likely to fail," the SRB said in a statement on Monday.
"Unfortunately, with Sberbank in Hungary and Austria, we have the first victim of the Brussels sanctions policy," Hungarian Foreign Minister Peter Szijjarto told a press conference on Wednesday morning. ■