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Creditors to Latvia's Trasta Komercbanka submit claims worth EUR 228 mln

BC, Riga, 06.05.2016.Print version
Creditors to the to-be-liquidated Trasta Komercbanka have submit claims worth EUR 228 million, said the bank's liquidator Ilmars Krums in an interview with Latvian business daily Dienas Bizness on May 6th, cites LETA.

The deadline for submitting claims is June 17. The liquidator said that there is not guarantee that the bank's assets will cover all the claims. The initial evaluation suggests that the depositors should recover all deposits, but the bank's shareholders and investors in the bank's subordinate capital may not recover their investments.

 

Trasta Komercbanka has already paid more than EUR 38 million to its customers in state-guaranteed compensations. Deposits over EUR 100,000 can be paid after debts from the bank's debtors are recovered, Krums said.

 

He told the daily that inventory of the bank's movable and immovable property has been completed and the first auctions on real estate properties have been announced, but it is too early to speak about results of the auctions and prices.

 

Auctions of the bank's loan portfolio's might take not sooner than in late summer. The liquidator is assessing the bank's loan portfolio because debtors are located not only in Latvia, but also in Russia, Belarus, Ukraine and Bulgaria.

 

The initial goal of the liquidators is to complete the liquidation process in 1.5-2 years.


As reported, the European Central Bank (ECB) has revoked Trasta Komercbanka's license, based on a proposal submitted to the ECB by the Financial and Capital Market Commission, and the bank's operations were halted on March 3.

 

According to the Financial and Capital Market Commission, Trasta Komercbanka has been operating with losses for a long period and has no viable business model or development strategy adequate to the situation. In addition, serious and sustained breaches of the anti-money laundering and counter-terrorist financing regulations were identified in the bank's activities.

 

On March 14 the court in Riga ruled to begin the liquidation process of Trasta Komercbanka and appointed a liquidator, lawyer Ilmars Krums.

 

According to preliminary results, Trasta Komercbanka closed 2015 with EUR 4.663 million in loss, down 2.7 times from 2014.At the end of September 2015,Trasta Komercbanka was the 12th largest Latvian bank by assets, and the 13th largest bank by attracted deposits, according to the Latvian Association of Commercial Banks.






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