Following the collapse of Fortuna Banque, the Luxembourg Deposit Guarantee Fund (FGDL) has refunded €5.2m to 240 depositors, as of 31 December 2023, the FGDL has told Delano.

The FGDL is responsible for reimbursing client depositors in the event of a bank’s bankruptcy. Typically, in such instances, the FGDL reimburses deposit amounts up to €100,000 per person within seven working days, regardless of the number of deposits, their currency or the depositor’s nationality or residence, it said.

Fortuna Banque was by the Luxembourg district court on 12 October 2023. Subsequently, FGDL contacted all eligible depositors via mail on 18 October 2023, providing information letters and accompanying forms. However, the exact number of eligible clients reached through this communication method remains undisclosed.

It’s important to note that FGDL does not cover compensation for investors holding financial instruments. Such coverage falls under the investor compensation scheme (SIIL), which is run separately by the financial regulator CSSF and provides coverage of up to €20,000 per person per institution, with no overlap with FGDL guarantees.

In a similar development earlier this year, on 7 February 2024, East-West United Bank judicial liquidation. However, in this instance, the FGDL has reimbursed only one depositor, as of 10 June 2024. Only a single saver has claimed reimbursement whose “supporting documentation was complete,” as of Monday, the FGDL stated. “The corresponding amount was below the coverage level of €100,000.”

As of 10 June 2024, FGDL’s deposit guarantee scheme covers 86 banks in Luxembourg.