Olavs Cers, the liquidator of “Baltic International Bank” in liquidation, recovered assets in the amount of 200,110 euros from March 25 to March 31, according to the announcement in the official publication “Latvijas Vēstnesis”.
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Among them, 189,639 euros were recovered from recovered loans, and 10,471 euros were recovered from other assets.
In the reporting period from March 25 to March 31, no payments were made, which are recognized as liquidation expenses according to the Law on Credit Institutions.
The liquidator has started taking over the assets and documents of the credit institution to be liquidated, and the inventory. Processing of requests for information submitted by the supervisory authorities – the Bank of Latvia, the Financial Intelligence Service and other law enforcement authorities and the preparation of the requested information.
After the start of the liquidation process, the liquidator has begun to identify the property of third parties in the possession or custody of the credit institution to be liquidated, and has also begun to address the issue of transferring the identified property to third parties.
The report submitted by the liquidator states that the bank’s assets on March 31 amounted to 103,486,014 euros.
Among them, loans were in the amount of 19,714,857 euros, claims against credit institutions – 10,381,709 euros, debt securities and other securities with fixed income – in the amount of 9,358,950 euros.
At the end of March, the bank’s liabilities amounted to 93,906,441 euros, including deposits – 78,976,869 euros, and liabilities to credit institutions – in the amount of 3,490,091 euros.
On the other hand, the bank’s capital and reserves amounted to EUR 9,579,573 at the end of March.
It has already been reported that the claims of the bank’s creditors must be filed by the end of June, according to the bank’s public information.
The liquidator of “Baltic International Bank” Cers states that March 24, 2023 is considered the date from which the credit institution is recognized as liquidating.
Claims of creditors and claims of other persons and other claims against “Baltic International Bank” must be submitted to the liquidator within three months from the date of publication of the advertisement in the official publication “Latvijas Vēstnesis”, that is, from March 29, 2023. Creditors’ claims submitted after this deadline will be examined and satisfied in accordance with the procedures set forth in the Law on Credit Institutions.
The creditor’s application must be prepared in Latvian, or if it is prepared in another language, a notarized Latvian translation must be attached to it. Original documents or notarized copies of documents must be attached to the creditors’ claim, in compliance with the requirements of the 1961 Hague Convention on the Abolition of the Requirement for Legalization of Foreign Public Documents.
Creditors must calculate the total amount of claims in foreign currency in the claim and indicate it in euros according to the foreign exchange rate determined by the European Central Bank on December 12, 2022.
Information on documents to be submitted by natural persons and legal entities is available on the bank’s website.
It has already been announced that the Court of Economic Affairs has declared “Baltic International Bank” to be liquidated from March 24.
The court determined that in the liquidation process of the credit institution “Baltic International Bank” the participation of three board members, the former board member and the chairman of the board, the chief accountant and the board member is mandatory.
The Financial and Capital Markets Commission (FKTK), which has been attached to the Bank of Latvia since this year, recognized “Baltic International Bank” on December 12, 2022 as a financial institution that has fallen into or is likely to fall into financial difficulties, and decided not to ” “Baltic International Bank” resolution, namely by not implementing measures to stabilize the bank’s operations.
According to the FCTK’s explanation, the operating strategy of “Baltic International Bank” did not meet the bank’s capabilities and was not feasible, therefore the bank did not provide a profitable business model for a long time. The bank also had serious weaknesses in internal governance, including in the areas of anti-money laundering and countering the financing of terrorism and proliferation.
“Baltic International Bank” last year, according to preliminary data, had a loss of 26.773 million euros, which is 5.3 times more than in 2021. The bank’s assets on December 31, 2022 amounted to 139.051 million euros, which is 33.8% or 71.12 million euros less than at the end of 2021, when the assets of “Baltic International Bank” were 210.171 million euros.
The biggest shareholders of the bank are Valerys Belokon (38.13%) and Vilory Belokon (21.3%). In terms of assets, “Baltic International Bank” was the 10th largest bank in Latvia at the end of 2021.
