Uherský Brod in the Uherské Hradiště region has CZK 21 million in savings accounts at Sberbank. After the start of Russia’s military invasion of Ukraine, the city’s representatives failed to cancel the deposits, announced Mayor Ferdinand Kubáník (KDU-ČSL) today. Nevertheless, he believes that the town hall will be able to get the money back. Czech Radio drew attention to the city’s accounts with Sberbank. Russia’s largest bank, Sberbank, said today that it was leaving Europe. It also announced that the level of its capital and the quality of its assets were sufficient to be able to pay out money to all depositors.
According to Kubáník, Uherský Brod has two separate deposits in Sberbank in a designated account in the total amount of CZK 21 million. “Nobody expected the war to start. The next day we started acting. We tried to cancel these deposits on Friday, but we didn’t succeed because internet banking was turned off during the day. Then we decided to resign there in person. we will deliver, but in the meantime the branches have also closed, so it was no longer possible,” said the mayor.
The city continues to work to get the money back. “The hope that we will not have to lose money is. It will be resolved only after the bank settles the assets it has. There are reports that the assets could be sufficient,” Kubanik said.
Sberbank justified leaving Europe by a large outflow of cash from its subsidiaries and a threat to the safety of employees and property, and did not mention the Russian invasion of Ukraine in its statement. The decision does not concern the Bank’s operations in Switzerland. Sberbank also said today that it increased its net profit by 64 percent last year to a record 1.25 trillion rubles (CZK 264.5 billion). The bank said it was no longer able to provide liquidity to its European subsidiaries, but that its level of capital and asset quality were sufficient to pay off money to all depositors.
In addition to Sberbank, Uherský Brod has a savings account in another banking institution. “When we are looking for a way to free money, we always withdraw from several banking institutions and try to spread the money. We do not have money only at Sberbank, but also at another financial institution. The money is distributed precisely because of the risk if it happens in a bank. something like now,” said Kubanik.
If the city fails to get the money back from Sberbank, he could mean postponing some of the city’s planned investments in the coming years. The approved budget of Uherský Brod, in which over 16,000 people live, counts on revenues exceeding 476.6 million crowns and expenditures of almost CZK 500.5 million this year.
Source: CTK
