Banks, Financial Services, Latvia, Legislation

The administrator recovered EUR 1,359,643 in January and EUR 8,068,755 in February, according to the report of the bank’s financial situation.

In February Latvijas Krajbanka and Ernst & Young Baltic (EY) reached a settlement in relation to financial audits conducted by EY, and EY agreed to repay EUR 7.75 million to Latvijas Krajbanka.

Latvijas Krajbanka’s assets at the end of February stood at EUR 45.2 million, while its liabilities were EUR 544.23 million. At the end of February 2016 Latvijas Krajbanka still owed EUR 233.275 million to the Deposit Guarantee Fund.

The total costs of the Latvijas Krajbanka insolvency procedure in this year have added up to EUR 990,873, including EUR 271,680 in January and EUR 719,193 in February.

Latvijas Krajbanka's administrator has recovered nearly a total of EUR 250 million.

On November 21, 2011, the Latvian financial watchdog, the Finance and Capital Market Commission (FKTK), ordered Latvijas Krajbanka to suspend all financial services. The decision was made due to a shortage of assets discovered at the bank, and a criminal proceeding has been started.

The Riga Regional Court declared Latvijas Krajbanka insolvent on December 23, 2011. On May 8, 2012, the court ruled to satisfy the request by KPMG Baltics auditing firm, which had been appointed the insolvency administrator of Latvijas Krajbanka, to start the bankruptcy procedure against the bank. Latvijas Krajbanka's banking license was annulled on May 10, 2012.