Following the amendments introduced by Directive (EU) 2019/879, the The power to suspend payment or delivery obligations under Articles 33a and 69(4) of Directive 2014/59/EU (BRRD) does not apply may now be exercised even with regard to eligible deposits. This excludes therefore both covered and other eligible deposits as defined in Article 2(1)(4) of Directive 2014/49/EU (DGSD).

The obligation for the deposit guarantee scheme (DGS) to make the repayable amount available within the periods laid down in Article 8 of the Directive 2014/49/EU (DGSD) is triggered by the determination of the unavailability of deposits pursuant to Article 2(1), point (8), DGSD. At any rate, the According to Article 2(1), point (8)(a), such determination of the unavailability of deposits pursuant to Article 2(1)(8) DGSD has to be based on the assessment that, in the view of the relevant administrative authorities, "the credit institution concerned appears to be unable for the time being, for reasons which are directly related to its financial circumstances, to repay the deposit and the institution has no current prospect of being able to do so" or, according to Article 2(1), point 8(b), "a judicial authority has made a ruling for reasons which are directly related to the credit institution's financial circumstances and which has the effect of suspending the rights of depositors to make claims against it." Furthermore, pursuant to Article 3(2), second subparagraph, of the DGSD, "the relevant administrative authority shall make the determination referred to in point (8)(a) of Article 2(1) as soon as possible and in any event no later than five working days after first becoming satisfied that a credit institution has failed to repay deposits which are due and payable". Once the unavailability of deposits is determined, it will in turn trigger the obligation for the DGS to make the repayable amount available within the periods laid down in Article 8 of the DGSD.

As specifically mentioned in Recital 28 of Directive (EU) 2019/879, when access to eligible deposits is suspended as a result of exercising the moratorium powers under Articles 33a and 69 BRRD, those deposits should not be considered to be unavailable for the purposes of the DGSD. In any event, resolution authorities must carefully assess the appropriateness of applying these moratoria powers to eligible deposits, and in particular covered deposits held by natural persons and micro, small and medium-sized enterprises, and should assess the risk that the application of a suspension in respect of such deposits would severely disrupt the functioning of financial markets. Finally, when the powers under Articles 33a and 69 BRRD are exercised, the period of suspension is not to last longer than the period from the publication of a notice of suspension to midnight in the Member State of the resolution authority of the institution at the end of the business day following the day of the publication.

Thus, access to covered and eligible deposits will be temporarily discontinued, without triggering the DGS repayment, each time the powers under Articles 33a and 69 are exercised with respect to those deposits within the limits set out within those provisions.

Disclaimer:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.