Belgium has adopted on 23 December 1994 a new law, with effect on 1 January 1995, implementing the European Directive of 30 May 1994 on deposit-guarantee schemes.

Credit institutions established in Belgium must adhere to a deposit-guarantee scheme in order to protect certain categories of depositors (other than those carrying out banking or financial activities).

The organisation of a guarantee scheme is vested with a public institution (Guarantee and Discount Institute). Such institution must guarantee deposits, medium-term notes, bonds and other banking instruments, which are denominated in ECU or in the currency of a member state of the European Union.

The guarantee to be granted under such scheme must at least cover deposits and other guaranteed assets for a minimum of ECU 15,000 for each depositor (ECU 20,000 as from January 1, 2000). Excess-amount clauses may however be provided in accordance with European law.

Special provisions apply with respect to Belgian branches of credit institutions established in other member states of the European Union.

The content of this article is intended to provide general information on the subject matter. It is therefore not a substitute for specialist advice.

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