1. What is the Deposit Guarantee Fund (hereinafter called FGD or Fund)?

The FGD is a public-law legal person with administrative and financial autonomy, having its head office in Lisbon, Avenida da República, no. 57, 8th floor, on premises of the Banco de Portugal.

2. What is the purpose of the FGD?

The purpose of the Fund is to guarantee the repayment of deposits opened with credit institutions authorised to receive deposits from the public and which are members thereof. It may also transitorily co-operate in initiatives intended to re-establish solvency and liquidity conditions of those institutions, within the scope of intervention programmes envisaged by law.

3. Which types of deposits are guaranteed by the Fund?

For the purpose of the guarantee granted by the Fund, any type of deposit is covered, provided that, under the legal and contractual conditions applicable, they are repayable by the credit institution and correspond to funds deposited in an account or resulting from transitory situations due to regular bank operations.

4. Are the certificates of deposit also covered by the Fund's guarantee?

Yes. The guarantee also covers the funds represented by certificates of deposit issued by the credit institution, but not those represented by other debt securities issued by the same credit institution nor debits resulting from own acceptances or outstanding promissory notes.

5. Is the guarantee granted by the Fund subject to any ceiling?

Yes, it is subject to a ceiling. The Fund covers in full the overall value of the cash credit balances of each depositor, whenever that value does not exceed € 100,000.

6. If a customer of a given institution holds accounts in more than one bank, does the guarantee cover the full value of all deposits?

The Fund covers in full the overall value of the cash credit balances of the depositor in each bank, whenever that value does not exceed € 100,000 in each bank.

7. Are the deposits expressed in foreign currency also covered by the Fund's guarantee?

Yes. Deposits denominated in foreign currency are also covered by the Fund's guarantee. For repayment purposes, they shall be converted into euros, at the exchange rate prevailing on the date of unavailability of the deposits.

8. Is interest due on deposits also included in the balances of the deposits, for guarantee purposes?

Yes. Interest due shall be included in the credit balances of the deposits covered by the Fund's guarantee, and is calculated up to the date of unavailability of the deposits.

9. How are the credit balances of joint accounts classified (whether jointly or jointly and severally held)?

In the absence of evidence to the contrary, they shall be considered as belonging in equal parts to the respective holders.

10. If my bank does not repay my deposits under the agreed conditions, when shall I be repaid by the Fund?

According the law, repayment shall take place within the following time limits:

• A share of up € 10,000 of all deposits covered, within a maximum period of seven days;

• The remainder up to the amount of compensation limit (100.000,00 euro per depositor), within a maximum period of twenty working days.

The time limit mentioned in the foregoing paragraph shall be counted as of the date on which deposits became unavailable, and the Fund, in exceptional circumstances and on a case-by-case basis, may apply to Banco de Portugal for one extension of the time limit, which shall not exceed a maximum period of ten working days.

11. When are the deposits considered to be unavailable?

Unavailability of deposits is considered to exist:

• when the credit institution, for reasons directly related to its financial situation, has been unable to carry out repayments within the legal and contractual conditions applicable thereto, and the Banco de Portugal has confirmed, within a maximum period of 21 days after having verified the first occurrence, that the institution does not seem be in a position to repay deposits on that date or in any other date in the near future;

• when the Banco de Portugal publishes the decision of withdrawing authorisation of the depository institution, should this publication occur before the confirmation mentioned in the foregoing number; or

• when, in relation to deposits taken by branches in Portugal of credit institutions having their head office in other EU Member States, a declaration of the supervisory authority of the home country is received, confirming that deposits taken by that institution are unavailable.

12. Are there any deposits excluded from the guarantee granted by the Fund?

Yes. Under the terms of the law, the following deposits are excluded from the repayment guarantee:

• deposits opened, in their name and for their own account, by credit institutions, financial companies, financial institutions, insurance companies, pension-fund managing companies or General Government bodies;

• deposits resulting from operations that have been the object of absolute conviction for money laundering;

• deposits opened in the name of investment funds, pension funds or other collective investment undertakings;

• deposits held by members of the boards of directors or boards of auditors of the credit institution, qualified shareholders, chartered accountants working for the institution, external auditors providing audit services or persons having a similar position in other companies which form part of the same group;

• deposits whose holder is married, related by consanguinity or by affinity in the first degree, or a third party acting on behalf of the depositors mentioned in the foregoing number;

• deposits held by companies which form part of the same group as the credit institutions;

• deposits on account of which the holder has unduly obtained from the credit institution, on an individual basis, favourable rates or other financial benefits that may have contributed to deteriorate the financial situation of the credit institution.

13. Which credit institutions are members of the Fund?

Every credit institution having its head office in Portugal and authorised to take deposits shall compulsorily be member of the Fund.

14. Shall branches in Portugal of credit institutions having their head office in other EU Member States also be members of the Fund?

Credit institutions having their head office in other EU Member States may also be members of the Fund, duly authorized, in relation to deposits taken by their branches in Portugal, if the level or scope of the guarantee is lower than the one offered by the Fund (topping up). In the other cases, deposits taken by those branches are guaranteed by the home country deposit guarantee scheme.

15. Are the deposits taken by branches in other Member States of credit institutions having their head office in Portugal covered by the Fund?

Yes. Deposits taken by branches in other EU Member States of credit institutions having their head office in Portugal are covered by the same guarantee scheme covering deposits taken in Portugal by the respective credit institution.

16. Are the deposits taken on-line by banks also covered by the Fund's guarantee?

Yes. The guarantee scheme is applicable to every credit institution member of the Fund, irrespective of the manner in which the banking activity is developed. However, credit institutions having their head office in other EU Member States taking deposits in Portugal through the Internet, or through other electronic means, are covered by the guarantee scheme of the home country.

17. Are the deposits taken in Portugal by credit institutions having their head office in a third Member State, but which do not have an establishment in Portugal, also covered by the Fund's guarantee?

No. Deposits taken in Portugal by credit institutions having their head office in other EU Member States, which are authorised to provide services in Portugal, are covered by the guarantee scheme of the home country of that credit institution.

18. How does the Fund obtain the financial resources required for the good performance of its functions?

The Fund shall have different resources, among which the initial contributions from member credit institutions, periodical (annual) and special contributions, income from investment of resources, sums received on loan, endowments and proceeds of fines exacted from credit institutions. In emergencies, particularly in cases involving aspects of a systemic nature, the Banco de Portugal can, under the conditions laid down in its Organic Law, temporarily grant the Fund the financial resources required to meet its immediate needs.

19. How do the supervisory functions of the Banco de Portugal differ from those of the Deposit Guarantee Fund?

The supervision of credit institutions, and in particular their prudential supervision, is incumbent on the Banco de Portugal, pursuant to its Organic Law and to the Legal Framework of Credit Institutions and Financial Companies.

The Fund is responsible for guaranteeing the repayment of deposits taken by member credit institutions and shall co-operate, on a transitional basis, in initiatives intended to re-establish solvency and liquidity conditions in those institutions, within the scope of the intervention programmes carried out by the Banco de Portugal.

20. Who is responsible for the management of the Fund?

The Fund is managed by a management committee comprised of three members, the chairman being a member of the board of Banco de Portugal, appointed by the Bank, the second member being appointed by the Minister of Finance, and the third member being appointed by the association representing in Portugal the member credit institutions which, on the whole, hold the largest volume of the deposits covered by the guarantee (Portuguese Banking Association). The Regulations governing the Fund define and regulate, inter alia, the duties of the management committee.

21. Who monitors the Fund's activities?

The Board of Auditors of Banco de Portugal shall monitor the Fund's activities and the observance of the applicable laws and regulations and shall issue its opinion on the annual accounts. Not later than 31 March, the Fund shall submit for approval to the Minister of Finance its report and accounts as at 31 December of the previous year, together with the opinion of the Board of Auditors of the Banco de Portugal. The Fund's accounts shall be subject to the subsequent auditing of the Court of Auditors.