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Krajbanka liquidation can cost economy over 100 millions
(No Ratings Yet)In case Latvijas Krajbanka, which is currently in a severely complex situation, is liquidated, the national economy will lose LVL 100 million or more.
Uldis Osis
According to the latest data, the total deposits hit LVL 580 million, of which – only LVL 350 million would be compensated from the Deposits Guarantee Fund. Thus LVL 230 million is the sum depositors will lose if Krajbanka goes bankrupt, reports Dienas Bizness.
According to the current estimates, the possible losses from the funds lost at Krajbanka could total 1% of GDP or LVL 13 billion.
The impact will be very diverse, hitting the banking sector very little, because Krajbanka takes up only 3% of the total banking market. “However, some companies with larger deposits could suffer significantly, possibly dragging down also the respective sectors,” says the economist Uldis Osis.
Osis does not think that the money lost at Krajbanka will have a significant effect on the national economy. “Losses depend also on how many of the bank’s assets will be sold,” he adds.
Ref: 102.105.105.316
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