ECB Withdraws Credit Institution’s License of ABLV Bank, AS in Liquidation

Riga, Latvia, July 12, 2018, 10:27 / Banking

On 11 July 2018, the European Central Bank (ECB) took a decision to withdraw the credit institution’s license of ABLV Bank, AS in liquidation. The withdrawal of the license is one of the steps provided in the plan of the bank’s voluntary liquidation.

With this ECB decision, the bank terminates its participation in the settlement system TARGET 2 (Trans-European Automated Real-time Gross settlement Express Transfer System). This means that it will no longer be possible to make direct payments to the accounts with AIZK international bank account number (IBAN).

Given the provision of the Credit Institutions Law that rendering financial services without an appropriate license is prohibited, ABLV Bank, AS in liquidation is immediately terminating provision of financial services and closing current and any other accounts of all persons who had such accounts opened with ABLV Bank, AS.

In order to ensure the necessary settlements under the liquidation procedure, ABLV Bank, AS in liquidation has already opened current accounts in other credit institutions. Clients and partners will be informed about the new banking details.

As reported earlier, on 12 June 2018 the Financial and Capital Market Commission (FCMC) submitted a draft decision about withdrawal of the bank’s authorisation of a credit institution to the ECB – that was the day when the FCMC approved the voluntary liquidation of the bank and the bank became a joint stock company in liquidation.

The ECB decision does not affect the procedure of accepting creditors’ claims – the creditors should continue lodging their claims by 18 September 2018.

Also, the withdrawal of the license does not affect the duty of the borrowers to continue repaying their obligations, therefore the clients should make payments for covering their obligations according the procedure available at the bank’s website and in the Internetbank.