European Central Bank Gives ABLV Bank Time to Stabilise the Situation

Riga, Latvia, February 19, 2018, 08:50 / Banking

In order to stabilise the situation and in accordance with the instructions of the European Central Bank, on 19 February 2018, Financial and Capital Market Supervision Commission made a decision to set temporary settlement restrictions on clients’ debit operations.

Such decision is made in order to give the bank sufficient time for taking actions for stabilisation of the existing situation and accumulating the funds necessary for ensuring normal operation.

As one of the stabilisation steps, the Bank has decided to pledge a part of securities at its disposal asking Bank of Latvia, in turn, to issue a loan up to EUR 480 million. By the end of 2017, the bank was having at its disposal liquid securities amounting to almost EUR 1.7 billion.

The structure of the bank’s assets is balanced, yet given the unfolding events currently transfer and sale of assets may require longer time than it is in standard situations. Therefore, the bank now needs to take measures for ensuring availability of sufficient financial assets.