FCMC receives ABLV Bank’s self-liquidation project
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.