Unjustified Offers to Represent Creditors’ Interests

Riga, Latvia, March 16, 2018, 14:35

Recently, we have learnt about different companies’ offers to represent creditors’ interests in the process of the voluntarily liquidation of the bank by promising “to ensure advantages and other benefits” in the course of the voluntarily liquidation. The companies require to make an advance payment for such services and ask for an interest of the amount received by the creditor.

We would like to draw your attention to the fact that the voluntarily liquidation of the bank will be carried out strictly in compliance with the voluntarily liquidation plan approved by the Financial and Capital Market Commission and applicable laws of Latvia — with maximum transparency and without any extraordinary priorities.

The Credit Institution Law of Latvia sets forth the sequence for satisfying the claims of the creditors. The liquidators are bound by this procedure; therefore, the claims of the creditors cannot be satisfied on a fast-track basis disregarding the sequence specified in the law. Similarly, it is not possible to transfer creditors to another group of creditors whose claims are to be satisfied sooner.

First, it is planned to ensure the guaranteed compensations. The deposits are being paid out since 3 March 2018; for this purpose, the total required amount of EUR 480 m has been provided to the Deposit Guarantee Fund. Further, the claims of other creditors will be satisfied, while the claims of the shareholders are to be covered in the last turn.

Please be careful if you receive an offer to represent your interests in the process of the voluntarily liquidation of ABLV Bank, especially if you are offered advantages contrary to the law — such offers have no legal basis.