Latviski English По-русски
Ceturtdiena 20.09.2018 | Name days: Marianna, Ginters, Guntra

Administrator fight: who will be in charge of ABLV Bank’s liquidation?

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCurrent laws provide that the post of the person who will lead the bankruptcy process for ABLV Bank will be very profitable. Candidates are currently being considered. It should be added that ABLV Bank’s credit portfolio had exceeded EUR 2 billion in 2017, as reported by Nekā personīga.

Finance and Capital Market Commission (FCMC) will provide the court with the name of the bank’s insolvency administrator. When selecting candidates, FCMC relies on candidate proposed by Latvian Council of Sworn Advocates and Latvian Association of Certified Auditors. The programme found out that the Council of Sworn Advocates gas proposed a total of five candidates: Aleksadrs Berezins from Berezins and Juraša law firm, Aldis Saulietis from Sjademe un Saulietis law firm, as well as Mareks Diks, Valdis Ulmanis and Jānis Bērziņš.

A new meeting of the Council of Advocates will be organized next week to discuss ten candidates in total. Among potential candidates could be the assistant administrator of Trasta komerbanka Mārtiņš Bunkus, administrator and advocate Vigo Krastiņš, manager of Insolvency Administrators Association Jānis Kumsārs, advocates Aivars Lošmanis and Gints Vilgerts. One other candidate is Raivo Sjademe, who is known to have protected interests of ex-politician Andris Šķēle.

The bank’s liquidator will be paid percentage of enforced funds. To make sure this person does not become a multimillionaire, the finance ministry has prepared amendments to the law that at least somewhat limit the liquidators’ income. Finance Minister Dana Reizniece-Ozola comments: «One proposal would be not taking into account the bank’s assets when calculating the administrator’s remuneration. Remuneration would be paid only for assets that should be enforced through legal means.»

On Saturday, 24 February, FCMC chairman and member of the European Central Bank’s supervisory committee Pēteris Putniņš announced there would be no delays with payment of deposits. It should be said that on the night to Saturday FCMC concluded that ABLV Bank has unavailability of deposits.

Both the minister and FCMC supervisor emphasize that ABLV Bank collapsed not because of financial, but rather reputation problems. Experts also mention that USA would not have applied sanctions on the bank if FCMC had punished the bank for its indirect transactions with North Korea in 2017.

Putniņš explains that FCMC had applied fines on the bank for money laundering activities in 2016. After that, FCMC announced it would be more lenient towards the bank. Restrictions FCMC had imposed on itself prevented the institution from punishing ABLV for violations associated with North Korea in 2017. The vote on not punishing the bank was not unanimous.

Closure of ABLV Bank made people question the security of banks whose operations are mainly associated with non-residents. The finance minister announced on Saturday that this business has no future – if banks want to keep doing business, they should dispose of risky clients. And this should be done within the next two years.

According to information from Bloomberg, most of ABLV Bank’s clients hail from Russia (43%), followed by Ukraine (21%). There is an odd transaction associated with Ukraine. It turns out, the bank was used by US President Donald Trump’s former advisor Paul Manafort, who also serviced ex-president of Ukraine Viktor Yanukovich. This information was confirmed to Nekā personīga by an individual closely associated with ABLV Bank.

Leave a reply

20 complaints received in first 10 days of data protection regulation

In the first 100 days since adoption of European General Data Protection Regulation, Latvia’s Data State Inspectorate has received 20 data protection violation reports, said the centre’s director Daiga Avdejanova during a meeting of Saeima’s European Affairs Committee.

Ministry: non-banking lenders should assess clients’ solvency more carefully

Although certain improvements have been noticed in the industry, Latvia’s Economy Ministry invites amendments to make non-banking lenders perform more careful evaluation of clients’ solvency and allow creditors exchange information with one another.

Saeima argues over request to assess attempts to cancel «morality amendments»

During a meeting of Saeima’s Inquiry Committee, certain members and NGO representatives exchanged harsh words on Saeima opposition deputies’ request to Prime Minister Māris Kučinskis on association Papardes zieds’ protection of interests for the cancellation of so-called morality amendments.

EU residents believe European authorities should be more involved in certain areas

According to results of European Parliament’s Eurobarometer study, published eight weeks prior to elections in EU, residents believe European authorities should be more involved in certain matters. Priorities include terrorism threats, unemployment and environmental protection.

Estonian internet user growth strongest among elderly

The share of internet users in Estonia has continued to grow in 2018 and has over the past three months increased the most among 65–74-year-olds, official statistics show.

Regulator invited to assess calculation of electricity transmission tariff

Conclusions made by State Audit in relation to tariffs employed by Sadales tīkls show that recommendations received from OECD a couple of years ago in relation to public service tariff calculation should be carefully considered and adopted to ensure balance the interests of consumers and service providers.

Latvian police points towards stagnation in road traffic safety

So far this year 91 people have died in road traffic accidents in Latvia. According to State Police Road Traffic Safety Office Chief Normunds Krapsis, stagnation is present for road traffic safety.

Latvian government to attract EUR 29.5 million to restore Latgale’s degraded territories

On Tuesday, 18 September, Latvia’s Cabinet of Ministers supported the action plan for Latgale region’s economic growth 2018-2021, which provides for attracting of EUR 29.5 million to help restore the region’s degraded territories.

China announces retaliatory tariffs on U.S. goods, seeks free trade support

Beijing has stated it would impose a duty tariff increase on American imports worth 60 billion U.S. dollars in a reaction to Washington's announcement to add tariffs on imports from China worth 200 billion U.S. dollars.

Montenegro to join NATO battalion stationed in Latvia

According to NATO Deputy Supreme Allied Commander in Europe James Everard, Montenegro plans to join the multi-national battalion currently stationed in Latvia.

U.S. looking seriously at Poland's request for American base on its soil

U.S President Donald Trump has noted the country was looking seriously at a request from Poland for a permanent U.S. military base in the fellow NATO member state and agreed that Polish concerns about possible Russian aggression were shared.

Russian plane near Syria shot down by ally targeting Israeli planes

The Russian military plane, which went missing on Monday, has been shot down by its ally Syria targeting Israel's war planes and the number of servicemen lost in the event has been corrected from 14 to 15, the Russian government stated.

Latvian border guards find more than 140 kg of hashish in a car

On 16 September, Latvian State Border Guard detained a 1991-born man and his car at Grebnev border checkpoint. A secret compartment containing 145.3 kg of narcotic substances was found in his car during a routine inspection, as reported by State Border Guard.

EU suspects German car-makers of colluding against cleaner technology

EU competition watchdogs are probing if German automotive giants have colluded to restrict the development of clean emission technology.

Number of job vacancies in Latvia up 7.8 thousand in Q2 2018

In Q2 2018 there were 24.5 thousand job vacancies in Latvia, which is 7.8 thousand vacancies or 46.6 % more than in Q2 2017. In public sector there were 7.2 thousand and in private sector 17.3 thousand job vacancies.

Latvian government desperate to resolve the growing piles of used tires problem

Latvian government has supported Environment Protection and Regional Development Ministry’s prepared report ‘On maintenance of used tires’. This report includes proposals for measures to help resolve the matter regarding speeding up recycling and regeneration rates, as well as the no less important matter of maintenance of used tires.

Cargo volumes handled by Latvian ports remain stable in first half-year of 2018

Latvian ports transshipped 43.468 million tonnes of cargoes in the first eight months of 2018, which is 0.9% more than in the same period of last year. According to data from Transport Ministry, cargo turnover’s negative balance continues declining at Ventspils port, where 13.274 million tonnes of cargoes were transshipped in the first eight months, which is a drop of 11.9%.

airBaltic carried 18% more passengers in summer

Latvian airline airBaltic has carried 2,770,047 more passengers to destinations in Europe, Scandinavia, Russia, CIS and the Middle East in the first eight months of 2018, BNN was told by the company.

Ukrainian workers in Lithuania gradually fill gap left by Lithuanian exodus

Companies in Lithuania, in particular operating in construction, logistics and retail chains, are increasingly inviting workers from Ukraine and Belarus to fill the worker shortage of Lithuanians moving to richer countries.

ABLV Bank assets worth EUR 47.14 million recovered in August

Assets worth EUR 47.13 million were recovered from the liquidated ABLV Bank in August, which is 2.2 times more than a month prior, according to the account published in Latvian Herald.

Estonia bank watchdog points to Denmark's responsibility over Danske

As to the allegations of doubtful billions flowing via the Estonia branch of Danske Bank, the Estonian watchdog of financial institutions has noted that the Danish supervisory authority was responsible for the lender's risk control.

Liepaja City Council vice-chairman steps down

On Monday, 17 September, Liepaja City Council vice-chairman for tourism and investment affairs Ģirts Kronbergs announced his resignation.

Sixteen contenders apply for Rundale Castle Museum director’s post

A total of sixteen contenders have applied for participation in Latvian Culture Ministry’s announced open personnel selection process to find the next director of Rundale Castle Museum.

Russia: Military plane with 14 Russian soldiers has been lost near Syria

A Russian war plane with 14 servicemen on board has disappeared while over the Mediterranean Sea near the coast of Syria, Russia's Defence Ministry has stated.

Unity decides not to support UGF’s initiative for people’s elected president

Unity political party has no plans to support the amendments submitted by the Union of Greens and Farmers on people’s elected president, says Unity’s chairman Arvils Ašeradens.

Newest comments