bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 14.12.2017 | Name days: Gaisma, Auseklis
LatviaLatvia

FCMC puts rumours surrounding Norvik Banka’s problems to rest

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Norvik Banka is not insolvent, ensures its continuous operation and carries out obligations before its clients, the Finance and Capital Market Commission (FCMC) reports.

This was FCMC’s reaction to a publication on Pietiek.com saying that the bank needs to increase its base capital in one month’s time by approximately 50 million LVL; otherwise a decision will need to be made to suspend its operations. The state guaranteed amount of funding for Norvik Banka is approximately 204 million LVL.

It is statement to the media the FCMC also confirms that it has been performing different measures along with the bank for several months. These measures are meant to secure the bank’s long-term business development. A well-known Hungarian investor – Sandor Demjan – has been attracted. He has already invested more than five million EUR and also plans to increase the invested amount in accordance with the approved schedule.

“Important steps have been made, attracting a strategic investor for Norvik Banka, which will allow a long-term development of the bank. Investor attraction process was carried out under close supervision of the FCMC,” – Chairman of the commission, Kristaps Zakulis, comments.

The invested money will be used to strengthen the bank’s capital and positions on the local and foreign markets.

The FCMC adds that Demjan is the Chairman of an internationally well-known development company TriGranit Development Cooperation and a shareholder of TriGranit Development Limited. Demjan is also the owner of Hungary’s Granit bank.

It is said in the commission’s statement that the entire world, including Latvia, have been working on the strengthening of the banks’ base capital since 2008.

Norvik Banka has already released a statement that says the bank has a paid base capital increase of more than 11.6 million LVL. The base capital was increased by attracting an important foreign investor from Hungary.

Before the increase, the bank’s capital was 57 390 281 LVL. After the registration of the increase at the Enterprise registry it will be 65 568 589 LVL.

The bank explains that the investor is a company owned by Demjan. His company has confirmed the interest to increase its participation in the bank’s capital after receiving an approval from the FCMC. This is why the company is conducting negotiations with the bank’s shareholders. The FCMC is informed about the deal, and the increase of the base capital is coordinated and accepted by the FCMC, Norvik Banka reports.

Deputy Chairman of FCMC, Janis Brazovskis, confirmed to Pietiek.com that there problems with Norvik Banka exist. He did not deny that the bank has been under strict supervision of the FCMC for three months. He is certain that the bank will be able to complete the FCMC’s request to increase the bank’s base capital in full accordance with the schedule, set during negotiations with the bank’s owners.

The problems began after the bank’s largest owners – Icelandic Straumborg Group – ended up in financial difficulties. Active attempts are now being made to find an appropriate strategic investor; one that would solve the bank’s problems.

Norvik Banka’s base capital was 37.3 million LVL in the end of 2011. It was announced in March 2012 that the bank is planning to increase its capital by 15 million LVL. The FCMC requested this, so it was done.

Ref: 104.109.109.4475


Leave a reply

Maxima: residents have become more conservative in their choice of products

In Q2 and Q3, a higher degree of conservatism was noticed in residents’ choice of products. The number of buyers who gladly purchase new products has declined, whereas the number of buyers who do not change anything in their purchasing habits has increased, according to results of a study performed by Maxima.

Civil processes to be sped up and simplified in Latvia

On Thursday, 14 December, Saeima supported amendments to the Civil Process Law in the final reading. Amendments propose several major changes to the process of review of civil processes to make court sessions quicker and more efficient.

State Auditor dissatisfied with parliament’s slow legislative process

Latvian State Auditor Elita Krūmiņa plans to inquire to the Saeima about the delay with the approval of the legislative draft on the expansion of authority of her institution, as she mentioned in an interview to Rīta panorama programme of LTV.

Aldaris commences exports to France, China and Netherlands

Aldaris concludes 2017 with three new export contracts, commencing exports of products to China, France and Netherlands. Until now Aldaris has exported products to eight markets, with the largest one being United Kingdom, taking up 78.71% from Aldaris export volume, as reported by the company.

Estonian budget passed with 0.25 billion-euro deficit

The Estonian Riigikogu with 55 votes against 41 has passed the country’s 2018 state budget bill planning to spend by 0.25 billion more than it is planned to earn.

AFSAL: loan requests in non-banking industry are declined in 69% of all cases

In the first six months of 2017 Alternative Financial Services Association of Latvia (AFSAL) issued a total amount of EUR 84.7 million in consumer loans. No increase is noted in this amount when compared with the same period of 2016. Increase did not exceed 0.2%, as reported by the association.

European Parliament supports changes for combating activities detailed in Panama Papers

Public registries with names of true owners of businesses, effective protection of whistle-blowers and stricter requirements for financial intermediaries are some of the proposals intended to assist with the fight against tax avoidance, as noted by members of the European Parliament.

Former deputy chief of anti-corruption bureau: Christmas lights are more important to Riga mayor than residents’ welfare

«Mayor of Riga Nils Ušakovs focuses a lot on ‘shiny things’ and procurements performed by capital associations in which flow of money is hard to control. For example, Ušakovs has decided to allocate from the budget EUR 200,000 for Rīgas Gaisma to procure Christmas decorations. Meanwhile in Riga there are nearly 50 km of streets with no lighting. This demonstrates that the mayor focuses on ‘shiny things’ instead of improving life for Riga’s residents,» former deputy chief of Corruption Prevention and Combating Bureau (KNAB) Juta Strīķe told BNN in an interview.

Turkey and 56 other countries recognise East Jerusalem as capital of Palestine

In a summit of the Organisation of Islamic Co-operation, held in reaction to Washington’s decision to recognise the city of Jerusalem as only the capital of Israel, Turkey and 56 other Muslim countries have called on the rest of the world to recognise «the State of Palestine and East Jerusalem as its occupied capital».

Ventspils City Council opposition member sees possibility of establishing closer ties with Unity

«If Unity is interested, and wants to come back to the values it once had, we may consider working more closely. My knowledge and experience from the past 5-6 years may be useful in restarting political cooperation and restoration of lost influence,» said Ventpils City Council opposition member Ģirts Valdis Kristovskis.

FM mentions progress in combating grey economy; prime minister expects more

Latvia will continue combating grey economy in construction field and fight envelope wages, said Latvian Finance Minister Dana Reizniece-Ozola during the ministry’s Taxpayer Forum 2017 organized by the ministry on Wednesday, 13 December.

EP agrees to EU moving on to phase II of Brexit talks

Members of the European Parliament have overwhelmingly supported what has been negotiated upon in the joint EU-UK progress report in Brexit talks and have recommended Brussels to move on to phase two negotiations on the future relations of the parties.

Businessmen share stories: ‘surviving’ and taking risks in Latvia when starting a business

The silent period – the time for Christmas wishes – has begun. Snow covers Tukums, and the city slowly becomes white. Everything is quiet at Pils ielā. The phone rings, interrupting a quiet moment of watching snowflakes fall under the light of a lantern. «You’re here for us, aren’t you?» BNN goes to interview manager of Merci Cafe Anija Rabkeviča (23) and cafe’s founder Rinalds Pluģis (22). They tell about their experience of ‘surviving’ in Latvia.

BATL: Transport Ministry plans to increase burden on taxpayers’ shoulders

Latvian Transport Ministry’s developed development plan for the transit industry, which was presented to Saeima’s National Economy Committee this week, states that raising competitiveness in the country requires subsidizing railway cargo transports.

Croat soldier dies in Lithuania barracks

A soldier from the Croat contingent in Lithuania, who served in the Rukla military town as part of NATO international forces, has passed away.

LMP President: proposal for LMT and Lattelecom merge was only politically discussed

Only political discussions were held proposal on the merge between Latvijas Mobilais Telefons and Lattelecom, and it is good that this matter has been taken off the agenda, said LMT President Juris Binde in an interview to Rīta Panorāma programme of LNT.

Survey: 55% of employed people are not paid for overtime

More than half of employed people work overtime. On top of that, 55% of them are not paid for working overtime and 45% are paid, according to results of a survey performed by CV Market.

Estonian military receives anti-tank missiles, bought with U.S. funding

The Estonian military has acquired another lot of missiles for the American-made man-portable Javelin antitank system bought with U.S. money allocated for supporting European defence measures.

Tallinners can claim millions for overpriced water, says competition watchdog

In the Estonian capital, the result of a legal dispute between water utility company Tallinna Vesi and the Estonian Competition Authority is that consumers are considered to be able to claim tens of millions of euros in compensation for overcharged water tariffs that have been in place for a number of years.

Latvian Association of Regions decides against working with For Latvia’s Development political party

It was decided at a meeting of representatives of Latvian Association of Regions (LAR) that the party will not work with For Latvia’s Development. The party has also decided to start in 13th Saeima elections with its own list of candidates.

Italy in state of emergency after fire at Austria gas hub

Italy has declared a state of emergency in its natural gas sector as a large explosion at a major natural gas hub in Austria killed one person, injured at least 18 and is prone to affect supplies in central Europe.

LEC: more expensive MPC is a serious burden for international competition

«To maintain GDP growth rate, the government should address priority matters like prevention of mandatory procurement component costs and electricity price rise to reduce costs for both businesses and residents. It is very important for employers to have the energy policy closely tied with production, because processing industry is the main driving force behind development of Latvia’s national economy,» says Latvian Employers’ Confederation (LEC) Director General Līga Meņģelsone.

Pilots of Ryanair expected to strike prior to Christmas

The clients of Irish low-fare airline Ryanair will face inconvenience before Christmas as pilots and crew announced industrial action seeking to achieve union recognition and better conditions in the company, which is criticised by unions that it fails to offer pilots the same pay and conditions as its rivals.

Corruption in public sector remains a major problem in Latvia

Money laundering activities and grey economy are in decline in Latvia. However, corruption in the country’s public sector and smuggling activities remain serious problems for the national economy, as noted in the report on unaudited economy, corruption in the public sector and money laundering activities in Latvia published by Latvian Chamber for Commerce and Industry on Tuesday, 12 December.

Saakashvili released from detention in Ukraine

Former Georgian President, now opposition activist in Ukraine, Mikheil Saakashvili, has been released from arrest by a judge, who denied a request from prosecutors to subject him to house arrest, but the case against him continues.

When do you go shoping for Christmas gifts?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: