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ABLV Bank paid EUR 9.5 million in compensations in two days

Publicity photo.
Approximately EUR 9.5 million was paid as guaranteed compensations in the first two days after declaration of liquidation process for ABLV Bank, as confirmed by Finance and Capital Market Commission chairman Pēters Putniņš in an interview to Latvijas Radio on Monday, 5 March.

«The total volume is slightly over EUR 470 million. EUR 9.5 million were paid in the first two days,» said Putniņš.

He said it is good that ABLV Bank clients do not rush to receive be paid back their deposits. This helps avoid a chaotic situation and panic. «It is good that people did not rush to the bank and instead decided to wait,» said the head of FCMC.

Citadele Bank, which is authorized with repayment of guaranteed deposits to ABLV Bank, expected more of an interest from the bank’s clients. Citadele Bank’s chairman Guntis Beļavskis told 900 seconds programme: «We had expected a greater degree of interest. However, it seems that after previous crises involving banks have understood that EUR 100,000 is guaranteed to everyone while we are in Eurozone».

He added that guaranteed compensations have been paid to approximately 600 ABLV Bank clients so far.

Citadele Bank started paying guaranteed compensations to ABLV Bank on Saturday, 3 March.

Residents who are also clients of Citadele Bank do not have to go their local branch office, because they can apply for compensation using internet banking services. Clients are also able to go to Citadele Bank offices, open an account there, connect to the internet banking system and later use it to apply for compensation.

Finance and Capital Market Commission’s Guarantee Fund office manager Jeļena Ļebedeva had previously told journalists that 87.8% of ABLV Bank clients will receive back all of their deposits. ABLV Bank has 22,830 clients, including 8,468 domestic clients in Latvia.

As it is known, European Central Bank made the decision to commence the liquidation process, which is to be realized in accordance with Latvia’s laws.

Following ECB’s instructions, FCMC applied payment restrictions on ABLV Bank on 19 February. Because ECB gave no instructions to lift restrictions, FCMC decided on the night to 24 February that unavailability of deposits took place in ABLV Bank.

ABLV Bank admits the decision made by FCMC means liquidation process will soon commence. ABLV Bank links the commission’s decision with political reasons.


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