Likvidējamā ABLV Bank, AS
Annual Financial Report
AMENDMENTS: Audited Report of ABLV Bank, AS in Liquidation for Year 2018
Riga, Latvia, 2019-03-27 08:55 CET --
(Audited Financial Report for 2018 and Corporate Governance Statement in 2018 are added in English.)
Liquidation Committee of ABLV Bank, AS in liquidation (hereinafter referred to as the Company) has approved the audited financial report of the Company for the year 2018. The audit of the 2018 Financial Report was carried out by Nexia Audit Advice, SIA, a firm of sworn auditors.
As reported earlier, in order to protect the interests of our clients and creditors, following the announcement by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (hereinafter – the FinCEN) on 13 February 2018 and the subsequent decision on 23 February 2018 by the Council of the Financial and Capital Market Commission (hereinafter – the FCMC) “On Unavailability of Deposits”, on 26 February 2018 there was a decision made by the extraordinary meeting of shareholders of ABLV Bank, AS on voluntary liquidation. This decision was made after the European Central Bank and the Single Resolution Board ruled that ABLV Bank, AS must be liquidated in accordance with the local legislation, i.e., legislation of the Republic of Latvia. The application for voluntary liquidation was approved by the FCMC on 12 June 2018, and this date is considered to be the day of commencement of the liquidation of ABLV Bank, AS in liquidation.
On 18 June 2018, the Company published notification on liquidation in the official publisher “Latvijas Vēstnesis”, which marked the beginning of a three-month period for accepting creditor claims. During this period, 98% of creditors lodged their claims. The creditors can submit their claims even after the said deadline, yet, pursuant to the Credit Institution Law, such claims will be included in lower-ranked group of claims.
After the above-mentioned three-month period, Liquidators reviewed creditors’ claims. During this labour-intensive process, the claims and supporting documents submitted by creditors were assessed and subsequently the claims were recognized, rejected and/ or deficiencies were indicated where necessary. It should be noted that recognizing of creditor’s claim means that the documents submitted are sufficient for the creditor to be included in the creditor list. This phase will be followed by the creditor assessment in accordance with the Methodology for AML/CTF/IS Compliance Monitoring Process approved by the FCMC on 6 March 2019.
The Methodology developed by a team of consultants from the international consulting company EY sets forth the requirements for creditor compliance review in accordance with the best international AML/CTF practices and legislation. Payouts to creditors will only commence after compliance reviews, and will begin with the creditors ranked in the second group. Creditors with deposits up to EUR 100 000 are ranked in the first group and have been able to access their deposits since 3 March 2018 through the Deposit Guarantee Fund.
The aim of the liquidation process is to satisfy the claims of all creditors of the Company to full extent, unless there are legal obstacles, as the assets of the Company significantly exceed its liabilities. By the end of 2021, the Company expects to pay out the majority of all deposits as well as commence settlement of other creditor claims, including those related to bonds and subordinated claims.
Since having taken over the management of the Company, the Liquidation Committee has paid special attention to the recovery of assets. By the end of 2018, assets in amount of EUR 355 million have been recovered, including more than EUR 150 million from loans and EUR 190 million from securities. The Company has sufficient amount of assets to satisfy all creditor claims in full.
Key financial indicators of the Company as of 31 December 2018:
total assets: EUR 2.4 billion, including EUR 1 billion with the Bank of Latvia;
capital and reserves: EUR 295.8 million;
assets recovered during the liquidation: EUR 355 million;
amount of taxes paid to the state budget in 2018: EUR 15.6 million;
number of employees: 313.
ABLV Group Communications Leader
Tel.: +371 6700 2454