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Friday 03.04.2020 | Name days: Daira, Dairis
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ABLV Bank’s creditors submit claims worth more than EUR 2 billion

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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.


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