OREANDA-NEWS. December 23, 2010. In Latvia, the individual cap on government-guaranteed deposits is expected to rise twofold in 2011. Latvia’s Parliament (Saeima) passed amendments to the Deposit Guarantee Act. The amendments are intended to raise the coverage limit guaranteed by the deposit guarantee scheme (DGS) to EUR 100 000. Under current law, the statutory upper limit for reimbursement per depositor is EUR 50 000 in case of unavailability of deposits from deposit-taking institutions, reported the press-centre of Rietumu Group.

The Chairman of Saeima’s Budget and Finance Committee Janis Reirs anticipates that the amended law will enhance safety for depositors, thus enabling Latvian banks to garner more deposits, according to Saeima’s Press Unit.

The amendments will come into effect on 1 January 2011 after having been approved by Latvia’s President.