On the Process of Voluntary Liquidation of ABLV Bank

Riga, Latvia, April 11, 2018, 13:42

After submitting a draft voluntary liquidation plan of the bank to the Financial and Capital Market Commission (FCMC) on 5 March 2018, we continue collaborating with the FCMC and keep providing the requested additional documents.

In accordance with the Law On Credit Institutions, in 30 days after all of the additionally requested documents are provided, the FCMC will assess the ability of ABLV Bank to fully cover all its obligations towards creditors in the set time.

The FCMC announced that the decision on the voluntary liquidation of ABLV Bank could be made by the end of April.

Upon commencement of the voluntary liquidation all clients who are in the status of a creditor according to the bank’s accounting data will receive an official notification about the commencement of the voluntary liquidation. In this notification, the creditors will be invited to submit their claims within three months, indicating the grounds and the amount of the claim, as well as valid identification documents supporting the claim, which are basically identical to those the client submits upon commencement of relationships with the bank. Given the number of creditors, after the term of submitting the applications, it will take about three months to review the applications, accept them and compile a list of creditors.

Please note that the process of voluntary liquidation shall be carried out only and solely in accordance with the voluntary liquidation plan and applicable laws of the Republic of Latvia — with maximum transparency and without any extraordinary priorities for anyone. Latvian Law On Credit Institutions provides precise order in which the claims of the creditors are being satisfied. It is the duty of the liquidators to strictly follow this order, therefore any satisfaction of claims on fast-track basis beyond the procedures provided by the law is impossible. Putting the creditor to another group of creditors whose claims would be satisfied in the first turn is also impossible.