Collapse of Serbia's Alta Bank Leaves Thousands of Russian Emigres Cut Off From Savings
Serbia's central bank shut down Alta Bank in late October, a lender widely used by Russians living in the country. Its owner is accused of embezzling about 390 million euros, and payouts to depositors have yet to begin.
Serbia's central bank shut down Alta Bank in late October, a lender popular with the large community of Russian emigres in the country. Thousands of people and businesses in Belgrade and elsewhere suddenly lost access to their accounts. Many Russians kept their entire savings there, including earnings from businesses founded in Serbia and money from selling apartments in Russia.
How customers found out
The bank did not notify its clients, so the news spread via Telegram and word of mouth. Alexandra Yakusheva, who runs the Auditoria bookshop, café and event space in Belgrade, found on the morning of Oct. 31 that her bank card did not work. Staff scraped together cash to pay a delivery driver, and that evening's Halloween party accepted cash only.
Allegations against the owner
The closure came less than a week after the Oct. 25 parliamentary election, in which Aleksandar Vučić's Serbian Progressive Party lost to the grassroots Student List movement, ending 14 years in power. The bank's owner, Davor Macura, a businessman close to the ruling party, was arrested this month after he reportedly tried to flee to Moscow. According to documents seen by the investigative outlet KRIK, prosecutors allege he embezzled about 390 million euros over six years. Most of it was recorded as cash deposits from the bank's exchange offices that never reached its vault. The money's whereabouts are unknown. Macura denies wrongdoing.
Compensation and what comes next
Serbia's Deposit Insurance Agency has agreed with state-owned Poštanska štedionica to pay insured deposits of up to 50,000 euros per depositor, but dates have not been announced. Those with larger balances must file claims in bankruptcy court, with no guarantee of recovery. The National Bank of Serbia says the financial system is not in danger, and researcher Helena Ivanov of the Henry Jackson Society does not expect the collapse to spread to other lenders.
Russians have lined up at other banks' branches but are often turned away. Russian-owned businesses in Belgrade have posted cash-only notices, and locals have compiled a list of 70 such businesses, urging people to pay them in cash. The Student List is expected to form a new government by the end of January.
