The court appointed sworn attorney Ilmars Krums as the bank’s liquidator. The ruling is final and is not subject to appeal. The full text of the ruling will become available on 21 March.
Guntis Cerbulis, representative of the Finance and Capital Market Commission, said after the announcement of the court’s ruling that it would be best to carry out the liquidation process as quickly as possible to protect creditors’ interests. He reminded that following the ruling of the court, all of the functions held by the bank’s management board will be taken over by the bank’s liquidator.
According to Krums, the first order of business is carrying out a full inventory of properties and documents in the bank. He also emphasizes that it is necessary to finish the liquidation process as soon as possible. His plan is to do that in two and a half years. Nevertheless, it is possible that unexpected obstacles may pop up over the course of the process.
Krums also reminds that it is planned to carry out repayments to depositors on 16 March. Starting from April, it is planned to repay funds to creditors.
While the bank’s plea in regards to the revoking of its licence remains in review, the court prohibits the bank from carrying out its main functions, as noted by Trasta komercbanka’s representative Krista Kreicberga-Neija. She adds that liquidation ‘cuts off’ many factors that are provided by EU regulations.
FCMC representative Ieva Berroni explains that time is of the essence in this process. Even if the bank wants to wait for the pre-judicial decision or expect the review of the liquidation case to be put off, the licence of the bank has already been revoked. With that, the process cannot be stopped.
In the final debate in court, Berroni explained that the liquidation process is primarily aimed at recovering the bank’s assets. She also noted that Trasta komercbanka’s exit from the market will not have a negative impact on the stability of Latvia’s financial sector.
The bank’s representative, on the other hand, appealed that the national court cannot make a decision on this matter, as Latvia’s laws are not harmonized with EU regulations. Kreicberga-Neija said in this case respect of rights of legal persons is important and cannot be ignored. Nevertheless, FCMC’s representative added that it is also possible that this process may end up in a situation may be reached in which it may be impossible to return to depositors.
Previously the commission’s representative had explained to the court that the decision to revoke the bank’s licence had been carefully analysed. It was requested to begin the bank’s liquidation as soon as possible in order to address the requests from depositors. The bank’s representative, on the other hand, said the ruling of the European Central Bank offered the chance of appeal in accordance with EU rights. The bank still has the right to submit a plea to challenge the ruling of ECB before the beginning of April.
As previously reported, following a request from FCMC, the European Central Bank revoked the licence of Trasta komercbanka at the beginning of March.