Account Guarantee Programs
On November 3, 2008, the Portuguese government, through a formal legal decree, increased the country’s deposit insurance coverage from EUR 25,000 to EUR 100,000 (USD 31,750 to USD 127,000). The decree came in response to the Global Financial Crisis and a European Union recommendation that all member states increase their deposit coverage to at least EUR 50,000. Portugal’s deposit-guarantee fund, the Fundo de Garantia de Depósitos (or FGD in Portuguese), had existed since 1992. In 2010, the fund was called upon to cover approximately EUR 100 million in deposits of the failed commercial bank Banco Privado Português, S.A., which had EUR 2.9 billion in assets. In March 2009, EU officials increased the required limit for EU members to EUR 100,000. Portugal’s EUR 100,000 coverage was initially set to expire on December 31, 2011; however, the government made it permanent on December 26, 2011.
Nygaard, Kaleb B.
"Portugal: Deposit Guarantee Fund,"
Journal of Financial Crises: Vol. 4
Iss. 2, 518-530.
Available at: https://elischolar.library.yale.edu/journal-of-financial-crises/vol4/iss2/21
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