«Tough de­ci­sion» – ABLV Bank share­hold­ers de­cide to liq­ui­date the bank

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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.

REUTERS/SCANPIX

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