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Bank of Latvia provided ABLV Bank with a loan of 97.5 mln euros in exchange for securities pledge

Photo: pixabay.com.
The Bank of Latvia has provided ABLV Bank with a loan worth EUR 97.5 million in exchange for securities pledge, as confirmed by the financial institution.

«Considering the request from ABLV Bank and Finance and Capital Market Commission’s supportive opinion, the council of the Bank of Latvia has made a decision to provide ABLV Bank a loan of EUR 97.5 million in exchange for a pledge of secure, highly profitable securities. State budget finances are not used in this financial market transaction. It should be added that the securities pledge significantly exceeds the loan amount,» as reported by the Bank of Latvia.

Although the loan to ABLV Bank is allocated, the money has yet to be transferred.

As previously reported, to stabilize the situation, ABLV Bank has decided to pledge part of its existing securities in exchange for a loan from the Bank of Latvia up to EUR 480 million.

In accordance with instructions from European Central Bank, FCMC decided to establish restrictions on ABLV Bank’s debit transactions in any currency on Saturday, 18 February.

FCMC chairman Pēters Putniņš has said that this decision was made based on instructions from ECB. «The main objective of the institution is ensuring stability in the sector. It was taken into account when making this decision. We will continue taking the necessary measures in cooperation with ECB. We will report on the development of this situation alter,» he said.

ECB notes that this decision was necessary to give ABLV Bank enough time to perform measures to help stabilize the situation. Restrictions came into force on Monday. They will remain in force until FCMC decides otherwise.

US Financial Crimes Enforcement Network (FinCEN) plans to apply sanctions against ABLV Bank for money laundering schemes that were used to circumvent sanctions against North Korea and assist with the country’s nuclear arms programme, as well assist with illegal activities in Azerbaijan, Russia and Ukraine.

The report published by FinCEN details that until 2017 the management of ABLV Bank had been using bribery to influence officials in Latvia in an attempt to avoid legal action and threats to its high-risk operations.

ABLV Bank’s representatives had previously noted that the report is a proposal from the US department. Objections can be submitted in written form within 60 days. The bank searches for opportunities to convince FinCEN to reconsider its proposals.

The bank claims it has never given bribes to officials. What FinCEN has said about the bank is completely unacceptable.


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Wim 21.02.2018
It will take many years before corruptian and crminal intellect will be lost in this country.