«Tough decision» – ABLV Bank shareholders decide to liquidate the bank
To ensure protection of clients’ and creditors’ interests and considering the decision made by the European Central Bank on commencement of the liquidation process, ABLV Bank shareholders made the decision on Monday, 26 February, to liquidate the bank.
ABLV Bank believes this decision will help ensure protection of assets to pay all of its clients, as detailed in the bank’s announcement. «Considering the previous insolvency and liquidation processes in Latvia, we believe it is the right decision. The bank’s financial state is excellent. This is why we have to take care of our clients and protect their rights,» said ABLV Bank chairman Ernests Bernis. «This decision is very tough and also the most appropriate in this situation,» said Bernis.
More detailed information on this decision will be reported by the bank’s representatives on Tuesday, 27 February.
Finance and Capital Market Commission (FCMC) representative Ieva Upleja said the commission has yet to receive any official information about the decision made by ABLV Bank shareholders. Because of that, the commission is unable to confirm information about the liquidation process.
As it is known, European Central Bank made the decision to commence the liquidation process, which is to be realized in accordance with Latvia’s laws.
Following ECB’s instructions, FCMC applied payment restrictions on ABLV Bank on 19 February. Because ECB gave no instructions to lift restrictions, FCMC decided on the night to 24 February that unavailability of deposits took place in ABLV Bank.
ABLV Bank admits the decision made by FCMC means liquidation process will soon commence. ABLV Bank links the commission’s decision with political reasons.
Problems for ABLV Bank started when Financial Crimes Enforcement Network (FinCEN) of US Department of Treasury announced in the middle of February that it plans to establish sanctions against ABLV Bank for money laundering activities that had assisted with North Korea’s nuclear arms programme, as well as illegal activities in Azerbaijan, Russia and Ukraine.