bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 17.10.2018 | Name days: Karīna, Gaits
LatviaLatvia

ABLV Bank’s creditors submit claims worth more than EUR 2 billion

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUNearly 3,300 creditors have responded to the invitation from ABLV Bank’s liquidators to submit their claims, submitting claims for more than EUR 2 billion, as confirmed by the bank.

The Credit Institutions Law does not detail any deadline for submission of claims by creditors who were not paid back their money prior to 18 September. This means they can continue submitting claims. Only creditors in this category are allowed to apply for this claim repayment order, as the law requires it, the bank notes.

«The liquidation committee is happy for this result. In spite of the relatively short period of time reserved for creditors’ claims, nearly a maximum amount has been received. This was accomplished as a result of efficient organization of work. The next step is no less challenging, because we will have to commence careful and responsible evaluation of all claims from creditors,» says ABLV Bank’s liquidator Arvīds Kostomārovs.

ABLV Bank says that after approval of methodology for creditor evaluation, the bank will require no less than three months to check the claims’ validity and then make a list of creditors. With that, the first payments to depositors who still had balance above state guaranteed remuneration amount at the time of announcement of the bank’s liquidation process could begin in January 2019. Payments will commence with private persons, micro-enterprises, as well as small and medium-sized companies.

Admittance and satisfaction of creditors’ claims will be performed in accordance under strict supervision from Finance and Capital Market Commission. EY (previously Ernst & Young) has been called in to assist with the liquidation process. The international audit company has developed methodology for money laundering prevention and compliance with sanctions, as well as creditor checks and cost supervision. This methodology project is currently being coordinated with Finance and Capital Market Commission, the bank adds.

Since the beginning of the bank’s self-liquidation process in June 2018, insolvency administrators have recovered assets worth EUR 80 million.

The goal of the liquidation committee of ABLV Bank is professionally managing the institution’s liquidation process to help restore trust in Latvia’s finance sector.

BNN had previously reported that the European Central Bank has revoked ABLV Bank’s license.

To ensure maximum protection of clients’ and creditors’ interests, and considering the decision by ECB on allowing commencement of the liquidation process, ABLV Bank’s shareholders decided at a meeting on 26 February to commence self-liquidation.

Problems for ABLV Bank started when US Department of Treasury Financial Crimes Enforcement Network announced in February 2018 its plans to establish sanctions against ABLV Bank for money laundering schemes that had assisted with North Korea’s nuclear arms programme, as well as illegal activities in Azerbaijan, Russia and Ukraine.

In response to these accusations, ABLV Bank’s lawyers asked FinCEN to call of its proposal, saying that experts put up «exaggerated accusations» without providing any tangible proof. It is also said FinCEN failed to take into account ABLV Bank’s accomplishments in preventing financial crimes.

ABLV Bank and its largest shareholders have also submitted pleas to the European Union Court against European Central Bank and Single Resolution Board. The bank’s lawyers from DLA Piper office in Germany have submitted four pleas in total on behalf of ABLV Bank and two of its largest shareholders – two against ECB and two against SRB.


Leave a reply

Opinion: Attīstībai/Par! party would very much like to work with NCP

Attīstībai/Par! would very much like to work with New Conservative Party in the new government in Latvia given the opportunity, as journalists were told by AP co-chairman Daniels Pavļuts.

Number of cars registered in Latvia increases more quickly than average in Europe

In the first nine months of 2018, Latvia experienced a more rapid increase with the number of newly-registered light vehicles than the average in the European Union, according to the latest information from European Automobile Manufacturers' Association.

Seven Latvian companies listed among TOP 50 Baltic businesses

Among the 50 largest businesses in Baltics, seven hailed from Latvia in 2017. This is three businesses fewer than there were the previous year, as BNN was informed by representatives of Coface with reference to their list of the TOP 50 businesses in Baltic States.

1.7% less alcoholic beverages was produced in Latvia in first eight months of 2018

In the first eight months of 2018, 34.2 million litres of alcoholic beverages, except for beer, was produced in Latvia. 1.7% less alcoholic beverages was produced in Latvia when compared to the same period of 2017, according to data from the State Revenue Service.

Baltic states do slightly worse in Global Competitiveness Report

In the Global Competitiveness Report 2018 released by the World Economic Forum, Lithuania and Estonia have dropped by two positions, while all Baltic states remain among the top 45 most competitive economies in the world.

Latvian corruption prevention bureau undergoes reorganization; several experienced officials retire

Reorganization has been performed at Latvia’s Corruption Prevention and Combating Bureau. As a result of this reorganization, seven of the bureau’s officials have decided to resign. Six of them have decided to retire.

Russia starts trial against director Serebrennikov after long house arrest

In Moscow, the court proceedings against Russian theatre and cinema director Kirill Serebrennikov has begun on Wednesday, which is over a year after he was put under house arrest in a controversial embezzlement case.

Latvian Saeima wants to further enhance Anti-Money Laundering Service’s authority

On Tuesday, 16 October, members of Saeima’s Defence, Internal Affairs and Corruption Prevention Committee supported in the first reading amendments to the Law on the Prevention of Money Laundering and Terrorism Financing.

Canada enforces legalisation of marijuana, expects economic benefits

Canada is legalising marijuana for recreational use on Wednesday and economists forecast that the new manufacturing sector would bring many new jobs, investment and tax income.

Additional funding of EUR 232 million to be allocated for EU projects in 2018

Additional funding of EUR 232 million will be allocated for different European Union policy instruments and other kinds of foreign financial assistance projects before the end of 2018, as decided by Latvia’s Cabinet of Ministers on Tuesday, 16 October.

EU expects something creative from London for Brexit summit to deliver

The remaining European Union member states will expect in Brexit-focused summit that the UK would bring a creative solution to the issue of Irish border that has halted the talks.

Government formation process in Latvia remains clouded by unanswered questions

Political parties in the process of forming a new government in Latvia still have not reached an agreement on the future coalition and the person to take post as prime minister.

Lithuania and Ukraine to co-operate in Fintech

The central banks of Lithuania and Ukraine have committed to working together to promote the development of financial innovations and have signed a Co-operation Agreement in the Area of Innovation Development.

Tragic gas poisoning in family home investigated in Estonia

In Tallinn, the death of two children from gas poisoning is under investigation. The tragic accident in a semi-detached house in the Estonian capital has taken place on Saturday, October 13.

Progressive party proposes forming a government in Latvia with no oligarchs

Political party Progressive offers parties elected to the Saeima to put an end to oligarchs’ rule over Latvia’s politics and form a government that would help end the state capture tradition in the country.

Latvian president announces law on publication of KGB files

On Tuesday, 16 October, Latvian President Raimonds Vējonis announced the law on publication of Latvian KGB files, as confirmed by the entry in Latvian Herald.

Pupils in Ukraine learn to hide in case of bombardment

In the Donbas war, over 10,000 people have been killed since 2014, therefore war drills and bomb shelters have become part of daily life for hundreds of schools near the frontline.

NCP’s proposed government model receives the first rejection

The government model proposed by the New Conservative Party has received its first rejection. Additionally, there are other parties that believe it is necessary to agree on tasks before picking posts.

Orthodox Church of Russia breaks away from Ecumenical Patriarchate

The Orthodox Church of Russia has announced cutting contacts with the leading body of the Church, the Ecumenical Patriarchate in Istanbul, after its decision to allow the Ukrainian church to become independent from Moscow. The decision has not been recognised by Moscow.

Latvian president announces amendments allowing for open election of state president

Latvian President Raimonds Vējonis has announced amendments to the country’s constitution that allow for open election of the state president, as noted in the official statement published in Latvian Herald.

UGF includes active ministers in its group for government formation talks

The Union of Greens and Farmers has delegated Latvia’s Defence Minister Raimonds Bergmanis and Agriculture Minister Jānis Dūklavs to its group for government formation talks, as confirmed by the party’s board chairman Armands Krauze.

Latvian government supports 2019 budget project

On Monday, 15 October, Latvia’s Cabinet of Ministers supported Finance Ministry’s prepared 2019 budget plan project. State budget revenue in 2019 is planned at EUR 9.178 billion, which is EUR 217 million more when compared to 2018, whereas state budget expenditures are planned at EUR 9.205 billion, which is EUR 96 million more when compared to 2018.

EC Vice-President: growth of Latvia’s economy is delayed by banking sector’s problems

Development of Latvia’s economy is delayed by problems in the country’s banking and transit sectors, says European Commission’s Vice-President Valdis Dombrovskis.

Danske Bank's rating lowered over Estonia branch scandal

American ratings agency Moody's has lowered its long-term ratings for Denmark's larges lender, Danske Bank, embroiled in a scandal of possible money laundering in Estonia.

Residents’ debts before non-finance companies remain the highest in Latvia

The debts of Latvian residents before non-finance companies have doubled over the course of the past half-year, reaching 305,000 unpaid bills, according to data from the Credit Information Bureau.

Who would be the best choice for the next prime minister of Latvia?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: