Aug 27, 2022

Prague Court Declares Russian Sberbank's Czech Subsidiary Bankrupt

Prague Morning

The Prague City Court declared bankruptcy on Sberbank CZ, the Czech subsidiary of the Russian Sberbank.

In late July, the court launched proceedings in the Sberbank CZ bankruptcy case. The bank is insolvent and, according to June’s data, it has overdue liabilities of more than EUR 2.3 million.

On 6 October, the Prague City Court will hold a second hearing on the lawsuits filed by creditors.

“During bankruptcy, the debtor’s assets are sold, and the proceeds are distributed among his creditors,” the report reads.

In early May, the Czech National Bank (CNB) revoked Sberbank CZ’s banking license, after which the Prague City Court took appropriate measures to liquidate the bank.

With measures to revoke the license, the Central Bank of Ukraine reacted to the deterioration of the situation in the Sberbank subsidiary due to the outflow of deposits in the wake of a Russian invasion of Ukraine.

As reported, in July the European Union extended sanctions against the Russian Sberbank as part of the seventh package of economic restrictions.

Sberbank closed its branches in the Czech Republic on February 25. The 25 branches of Sberbank CZ, which is part of the Sberbank Europe group, have a customer base of 120,000 people.

Sberbank left the European market on March 1.