The last time information about payments from ABLV Bank become more interesting. According to this, we’d like to provide you with some information about banks’ position.

 

The creditors' applications will be accepted in a short time

 

  • After termination of claims acceptance by creditor, it takes not less than 3 months verification for creating the list of depositors;

 

  • Payments to the depositors with balance more than 100 000 Euro produced on 23 of February start in December, 2018 starting from the second line of depositors;

 

  • Payments of the deposits with sum less than 100 000 Euro have been already ensured. From the beginning of the March, service has been provided by the Citadele bank;

 

  • Till the end of 2020, almost 95% of general deposits will be paid;

 

  • The procedure of compensation to depositors is regulated to legislation: compensation procedure;

 

  • Each money payments by the creditor will be accurately analyzed, also with the Financial and Capital Market Commission and the audit company.

 

By the decision of the Financial and Capital Market Commission was approved the largest process of self-liquidation in the Latvia history – will be liquidated bank with the actives currently on the sum 2,4 bln Euro

 

As FCMC pointed, in the short period will be prepared the draft of the bank license annulation decision, which will be applied to European Central Bank. During three days after moment when in Board FCMC the decision of bank shareholders about self-liquidation will be accepted, the liquidators must apply for publication in official publication «Latvijas Vēstnesis» and at least 2 others publications the notification about bank liquidation, that start the 3-months period for applying from depositors.

 

From the moment of liquidation process acceptance, the members of the council and bank directors lose their power and the Liquidation committee start working as senior bankers, where 4 liquidators are going to work, that are approved with the Financial and Capital Market Commission. The 2 of these liquidators have the appropriate experience and knowledge in the sphere of finance and commercial activity, and 2 others are the sworn attorneys. The liquidators company consist of sworn attorneys Elvis Vebers and Eva Berlaus, the expert in the field of finance and real property Andrias Kovalchuk, and also the expert in corporative finance Arvid Kostomarov. For the support of liquidators will be attracted also independent audit company Ernst&Young, which will include experts not less that from 5 countries.

 

“After 25 years of activity, put in creation of this company, it is hard to tell but we are happy to accept such decision, whereas in such situation – this is the most suitable decision. The managing of the bank will be made by the professional and independent group of liquidators, which make everything possible to meets the depositors needs on 100% in the short terms. We are glad that process will be within the sight of FCMC in cooperation with international auditor” – noted ex-head of bank managing Ernest Bernis.

 

As earlier notified, shareholders of the bank were forced to make such decision about self-liquidation, as a result of decisions from the 23 of February accepted by European Central Bank (ECB) and Soviet by bank resolution (SBR). On the 23 of February ECB accepted decision that ABLV and its affiliate bank in Luxemburg suffer or can suffer from financial difficulties (failing of likely to fail), that’s why these banks must be liquidated according to local legislation. In accordance with earlier happened enforced processes of liquidation in Latvia, shareholders of bank made a decision to realize the process of self-liquidation.

 

About process of liquidation

The aim of self-liquidation process – meet all the needs and interest of bank depositors on 100%. During the liquidation will be conducted different actions with the purpose to discharge the duties of ABLV before all the depositors in full volume.

 


ABLV Bank suggested that till the end of 2020 will be paid in the low 95% of all volume of bank actives, including money which has been already sent to Deposit Insurance Fund for payment foreseen by guarantee repayment law. The remaining sum of deposits and also other depositors’ demands, including obligation and subordinated demands, will be paid in the process of further liquidation. In general, it is suggested that process of liquidation can go on 5 years.

 

Annulation of bank license and following steps in the bank self-liquidation

After making the decision by the FCMC, the European Central Bank will take a resolution about bank license annulation. In the near future, clients will be invited to fill the application form of depositor during 3 months. For applying you need to point the verified claims and its size and also point actual identification documents and documents that verify the right of representation.

 

Taking into account the quantity of depositors, after termination the term of application, liquidators need 3 months for application processing, its acceptation and making the list of depositors. After the making of list, go on the money payment to depositors starting from the so named second-turn depositors. By the demand of the first-turn depositors - deposits with sum less than 100 000 Euro – money payment is covered by the Deposit Insurance Fund from the beginning of the March.

 

Information for lender

The beginning of self-liquidation process has no influence on current order of credit settlement. The responsibilities before liquidated bank must be done as usual. It is planned that after bank license annulation, money for credit settlement must be transferred to the other licensed credit organization. About it the clients will be informed in the short time individually.

 

About financial situation of ABLV on 30 of April 2018:

- The indicator of liquidness exceeds necessary minimum almost in 2 times: the liquidness index – 81,10% (by minimal level 30%), index of capital adequacy - 24,69% (that exceeds almost in 2,5 times the minimal level 11,5).

- In the Latvia Bank finance are in sum almost 1 bln Euro;

- The bank income for first four months was 3,7 mln Euro;

- On 30 of April 2018 the volume of bank actives were 2,40 bln Euro, the volume of deposites – 1,60 bln Euro, and loan portfolio – 828,3 mln Euro;

- The capital and reserves of bank are 351,7 mln Euro.

 

About ABLV group

  • Till the February events in the ABLV group had been working 900 employers. During 10 years bank had paid to the Latvia budget more than 145 mln E of tax. ABLV bank was the third largest bank in Latvia and the largest private bank with Latvian capitals. For the last years bank had direction on internal market, including invest projects, management of pension capital and financing.

 

  • The bank was one of the largest creditor in Latvia, that provided mortgage credit for household and also financing commercial companies, that helps to develop different branches. Also, bank had been developed the projects in the sphere of real property, including project for new business center New Hanza to 2033 bank had plans to attract investment in the sum to 1 bln Euro.

 

  • ABLV Capital Markets, IBAS, the affiliate company ABLV Bank, was one of the largest company in the sphere of brokerage services in Latvia, and at the end of 2017 the general sum of its actives, which were invested in financial instruments, was 1.34 bln Euro.

 

  • Whereas, ABLV Asset Management, IPAS was the largest manager of invest funds in Latvia, which volume of assets was more than 130 mln E on the 31.12.2017. Also, ABLV Asset Management, IPAS had been started the activity in management of pension capital in Latvia.

 

  • For 11 years of activity the charity fund ABLV Charitable Foundation had invested in development of Latvian community 5 mln E, supported 350 education projects, modern art, city environment and also helped children and families. Leading shareholders of the bank are going to finance without support of government the building of Latvian museum of modern art, for what were bought collection of artwork, which count more than 1200 works.

 

It is reported on the website ablv.com

Меню
Close