Question
What is meant by “appropriate amount” referred to in Article 8(4) DGSD?
Background on the question
Article 8(4) DGSD states that during the transitional period, where DGSs cannot make the repayable amount available within seven working days, DGSs shall ensure that depositors have access to an appropriate amount of their covered deposits to cover the cost of living within five working days of a request. DGSs shall only grant access to the appropriate amount on the basis of data provided by the DGS or the credit institution. DGSs will want to have some guidance on the determination of which amount would be appropriate.
Answer
The decision should take into account country-specific criteria, therefore it should be settled locally. In some cases, it should be even regional criteria, particularly as regards financial institutions operating in a small area. In the case of cross-border payments the final decision should be made by the Home DGS (which is formally responsible for the payment), but it should be preceded by consultations with the Host DGS.