Prague 1 will hopefully get back all the finances deposited in Sberbank
photo: Jan Svoboda, PrahaIN.cz/Sberbank
The town hall of the first city district is well on its way to recovering 93 to 100 percent of the funds it had deposited in Sberbank before the start of the war conflict in Ukraine. This was confirmed by negotiations with the insolvency administrator of the bank.
The main representative of the local government with the insolvency administrator of Sberbank Jiřina Lužová was attended by the Deputy Mayor of Prague 1 for Finance Tomáš Heres (ODS), the Governor of the Vysočina Region Vítězslav Schrek (ODS) and the Mayor of Jihlava Petr Ryška (ODS). He informed about it website Prague 1.
“We are proceeding in coordination with other creditors, such as Jihlava and the Vysočina region, and at the moment it is very realistic that Prague 1 will recover almost all of the invested funds,” said Tomáš Heres.
Sberbank owes about 60 billion
The discussion focused mainly on the amount of funds from which the claims of creditor groups, including companies, municipalities, cities and regions, should be paid. In total, it is about 60 billion crowns. Prague 1 had roughly 168 million deposited with Sberbank.
“I am very happy that, thanks to friendly and coordinated negotiations, we managed to achieve that we could receive 93 percent to 100 percent of the money deposited during the autumn payment,” acknowledged the mayor of Prague 1, Terezie Radoměřská (TOP 09).
The condition is the purchase of the loan portfolio
The payment condition is the completion of the transaction of the purchase of Sberbank’s loan portfolio in the amount of 41.05 billion crowns by Česká spořitelna. The contract was signed at the end of the year.
“For this reason, the Council of the Municipal District of Prague 1 decided at its meeting yesterday to withdraw the appeal against the appointment of the creditors’ committee,” added Deputy Mayor Heres.
Steps to revoke Sberbank’s license were initiated by the Czech National Bank on February 28, 2022. The reason was the deterioration of the bank’s situation due to the outflow of deposits after the start of the Russian invasion of Ukraine. The bank license was legally revoked at the beginning of May. The Prague Municipal Court subsequently sent the bank into liquidation.
Finances were also signed for holding balls
In addition, due to the economic situation, Jednička decided to cancel the Representative Ball and the Senior Ball this year. The saved funds are used in the social area, in particular addressing the impact of high energy prices on citizens’ living costs. He informs about it on website.
“The rise in prices and the effects of the previous covid and the current war crisis are of course also reflected in the economic situation of Prague 1 and a large part of our citizens. That’s why the management of the town hall decided that both our balls – representative and senior – will be held once every two years, i.e. in 2024 and 2026. I see this as a manifestation of budgetary responsibility,” explained 1st Deputy Mayor David Bodeček (Pirates).