Banks, Crisis, Financial Services, Latvia, Legislation

ABLV Bank has received a decision of the Council of the Financial and Capital Market Commission (FCMC) “On Occurrence of Unavailability of Deposits”. This decision is related to the payment restriction imposed by the regulators on 19 February, which in FCMC’s opinion is not subject to reviewing.

The decision on the merits means that in the nearest future the process of liquidation of the bank may be started.

The bank considers that it has fulfilled all requirements of the regulator in order to resume operation. In four business days, the bank accumulated more than EUR 1.36 billion to strengthen liquidity thus ensuring 86% of all demand deposits. It was absolutely sufficient for the bank to resume executing payments and meet all obligations towards its clients, yet due to political considerations the bank was not given a chance to do it.

The bank emphasises: the amount of its assets is sufficient to satisfy demands of all clients and creditors. All deposits guaranteed by the Deposit Guarantee Law shall be disbursed with the funds of ABLV Bank.

More detailed information about the further operation of the bank regarding clients, employees and shareholders shall be provided on Monday, 26 February.

About ABLV Group

There are 971 employees working in ABLV Group. In ten years, the bank has paid more than EUR 145 million in taxes to the Latvian budget.

ABLV Bank is the third largest bank in Latvia and the largest private bank with Latvian capital. Over the last years, the bank has been increasingly focusing on local market, including investment projects, pension capital management and lending.

The bank has issued almost EUR 1 billion loans, of which EUR 300 mln were issued in mortgage loans, while EUR 625 million in commercial loans thus contributing to the development of a list of industries. Also, the bank was developing real estate projects, including the new business district New Hanza, to which the bank was planning to attract investments up to EUR 1 bln by 2033.

ABLV Capital Markets, IBAS, the subsidiary of ABLV Bank, is one of the largest brokerage service providers in Latvia, and by the end of 2017, total clients’ assets invested in financial instruments amounted to EUR 1.34 bln.

ABLV Asset Management, IPAS is the largest investment fund manager in Latvia with total volume of funds’ assets exceeding EUR 130 mln. Also, ABLV Asset Management, IPAS has started operation in the field of pension capital management in Latvia.

Over 11 years of its operation, ABLV Charitable Foundation has invested in the development of the Latvian society EUR 5 miln supporting 350 projects in education, contemporary art, urban environment, as well as children and families.

The bank’s major shareholders were intending to co-finance construction of the Latvian Museum of Contemporary Art without asking any support from the state. The collection of art already purchased for the museum amounts to more than 1200 pieces.