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FCMC invites Bank of Latvia to provide ABLV Bank with yet another emergency loan

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The Finance and Capital Market Commission (FCMC) has invited the Bank of Latvia to issue ABLV Bank another emergency loan.

«Currently the national bank views securities as a pledge for the loan. The European Central Bank, which is the supervisory institution over ABLV Bank, has already provided its opinion about the issue of the loan,» said the press-secretary of the Bank of Latvia Jānis Silakalns.

At the same time, the press-secretary has say that the Bank of Latvia has proposed to entrust viewing this matter to Finance Ministry’s financial crisis management group.

«Similar to the previous loan of EUR 97.5 million, in this case as well the Bank of Latvia, with approval from FCMC, can provide emergency assistance with the bank’s liquidity. The loan is well organized, because it is to be issued in exchange for a pledge,» added Silakalns.

The previous loan was provided to ABLV Bank in exchange for securities. The Bank of Latvia reports that state budget funds were not used at all in this transaction. It is also mentioned that the value of securities exceeds the size of the loan.

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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