Liquidation of ABLV. Who is next?
The decision of the third largest bank of Latvia ABLV Bank on self-liquidation did not go unnoticed. A characteristic feature of ABLV Bank is the servicing of non-residents.
Earlier, the European Central Bank blamed ABLV in money laundering and support of terrorism, and subsequently – a significant deterioration in the liquidity of ABLV Bank in Latvia and ABLV Bank Luxembourg.
Due to this statement of the European Central Bank and subsequent analysis, the Financial and Capital Market Commission of Latvia has established payment restrictions for ABLV Bank, and depositors have begun to withdraw their deposits in large quantities. As a result, on February, 26 the shareholders of the bank made a decision on its self-liquidation.
Payments to depositors will be provided at the expense of the insured deposits of the bank and the funds of the Deposit Guarantee Fund.
The international rating agency Fitch stated that the liquidation of this bank did not affect Latvia’s credit rating, despite the broad opportunities for non-resident banking services on its territory. This is due to the lack of a massive withdrawal of deposits from other banks.
However, the international rating agency Moody’s Investors Service reports a decrease in Latvia’s credit rating due to the situation with the ABLV Bank, and also due to the charges against the President of the Central Bank of Latvia Ilmar Rimshevich in receiving a bribe in a particularly large amount on February 19.
It is worth noting that Latvian banks have become more cautious when opening corporate accounts to non-residents, but this does not mean full refusal of the banking sector of jurisdiction from servicing non-residents. To successfully open a corporate account in Latvia and abroad, it is rational to contact a team of SBSB professionals who will always provide prompt and high-quality legal support.