FCMC re­ceives ABLV Bank’s self-liq­ui­da­tion project

Baltic News Network - - News -

On Mon­day, 5 March, Fi­nance and Cap­i­tal Mar­ket Com­mis­sion re­ceived ABLV Bank’s doc­u­ments on self-liq­ui­da­tion. If no need arises to re­quest ad­di­tional doc­u­ments, FCMC will re­view pro­vided in­for­ma­tion in no more than 30 days.

Ex­perts will also re­view the credit in­sti­tu­tion’s last fi­nan­cial ac­count to get a grasp of the bank’s fi­nan­cial state, as well as as­sess its abil­ity to re­al­ize its com­mit­ments be­fore cred­i­tors, as re­ported by FCMC.

If the self-liq­ui­da­tion project is ap­proved, FCMC will sub­mit its de­ci­sion to the Euro­pean Cen­tral Bank on re­vok­ing ABLV Bank’s li­cense. Once ECB makes its de­ci­sion on re­vok­ing the bank’s li­cense, ABLV Bank will be able to com­mence self-liq­ui­da­tion process. On Satur­day, 3 March, Ci­tadele Bank started pay­ing ABLV Bank clients guar­an­teed com­pen­sa­tions.

Ap­prox­i­mately EUR 9.5 mil­lion was paid as guar­an­teed com­pen­sa­tions in the first two days af­ter dec­la­ra­tion of liq­ui­da­tion process for ABLV Bank, as con­firmed by Fi­nance and Cap­i­tal Mar­ket Com­mis­sion chair­man Pēters Put­niņš in an in­ter­view to Latvi­jas Ra­dio on Mon­day, 5 March.

«The to­tal vol­ume is slightly over EUR 470 mil­lion. EUR 9.5 mil­lion were paid in the first two days,» said Put­niņš.

He said it is good that ABLV Bank clients do not rush to re­ceive be paid back their de­posits. This helps avoid a chaotic sit­u­a­tion and panic. «It is good that peo­ple did not rush to the bank and in­stead de­cided to wait,» said the head of FCMC.

Ci­tadele Bank, which is au­tho­rized with re­pay­ment of guar­an­teed de­posits to ABLV Bank, ex­pected more of an in­ter­est from the bank’s clients. Ci­tadele Bank’s chair­man Gun­tis Beļavskis told 900 sec­onds pro­gramme: «We had ex­pected a greater de­gree of in­ter­est. How­ever, it seems that af­ter pre­vi­ous crises in­volv­ing banks have un­der­stood that EUR 100,000 is guar­an­teed to ev­ery­one while we are in Eu­ro­zone».

He added that guar­an­teed com­pen­sa­tions have been paid to ap­prox­i­mately 600 ABLV Bank clients so far.

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