Voluntary Liquidation

  • Approval of voluntary liquidation

    After the statement published on 13 February 2018 by the Financial Crimes Enforcement Network of the United States Department of the Treasury, on 23 February 2018, the Financial and Capital Market Commission (hereinafter – the FCMC) made a decision on unavailability of deposits at ABLV Bank, AS. In order to ensure maximum protection of client and creditor interests, during the extraordinary meeting of shareholders on 26 February 2018, a decision was made on voluntary liquidation of ABLV Bank, AS. The draft plan of the liquidation was submitted to the FCMC for approval on 5 March 2018, and on 12 June 2018, the FCMC approved voluntary liquidation of ABLV Bank, AS and proposed liquidators. This day is considered to be the day of commencement of Company’s liquidation.

  • Guaranteed compensation

    According to the Deposit Guarantee Law of the Republic of Latvia, compensation from the Deposit Guarantee Fund is guaranteed to each client for all types of deposits held with one bank in the amount of up to EUR 100,000 (except certain deposits set forth in Section 23 of the Deposit Guarantee Law of the Republic of Latvia). The Company has sufficient liquid assets to cover guaranteed compensations to all of its clients, and it has transferred more than EUR 480 million to the Deposit Guarantee Fund for this purpose. Disbursement of guaranteed compensations by Citadele banka, AS began on 3 March 2018. More information on guaranteed compensations is available in Section on Guaranteed Compensation.

  • Acceptance and recognition of claims

    All clients which were identified as creditors were notified about the commencement of voluntary liquidation. With the notice, creditors were invited to submit their claims within a three-month period by indicating the amount and the grounds for their claim.

    The Company began accepting creditor applications of on 18 June 2018. Until the deadline of 18 September 2018, 98% of all identified creditors had submitted their claims. Creditors may also file their claims after the deadline; however, according to the Credit Institution Law of the Republic of Latvia, their claims will be included in a group of lower priority.

    The acceptance of creditor claims was followed by an initial review and recognition of claims and compilation of a list of creditors, which involved assessing validity of each application and submitted documents. The liquidators inform each creditor about the decision made regarding their claim, as well as any deficiencies to be addressed. It should be noted that recognition of creditor’s claim only means that submitted documents are sufficient for including the respective creditor in the list of recognised creditors.

  • Creditor compliance review

    Creditor compliance review is an essential part of voluntary liquidation. It is a set of measures aimed at management of risks related to money laundering, financing of terrorism and proliferation, as well as and sanction violations. Payouts to recognised creditors are made only after creditor compliance reviews are completed and there are no legal obstacles. More information on creditor compliance review is available here.

  • Asset recovery

    Company’s assets (loan portfolio, securities, etc.) are being recovered in order to settle creditor claims, and they amount to EUR 2 billion, which is sufficient for satisfying all creditor claims to full extent. Latest information about asset structure is available in Section on Financial Indicators.