Banks, Financial Services, Latvia, Legislation

In May 2016, EUR 682,100 were recovered from the loans made by the bank and EUR 1,400 were recovered by selling movable property.

The amount recovered during the first five months of this year has thus reached EUR 10.921 million.

The total costs of the Latvijas Krajbanka insolvency procedure in May added up to EUR 1.474 million.

The report shows that at the end of May the bank owed EUR 233.275 million to the Deposit Guarantee Fund.

The bank's capital was negative at minus EUR 500.8 million in late May.

Latvijas Krajbanka's assets at the end of May stood at EUR 43.167 million, down from EUR 43.37 million at the end of April.  

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.