The administrator of ‘Trasta komercbanka’ has not recovered the bank’s assets in the last four months

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Thus, in the first five months of this year, the administrator of Trasta komercbanka has recovered only 70 euros, but since March 14, 2016, when the bank was declared liquidated, the administrator of Trasta komercbanka has recovered a total of 151.619 million euros, including in 2016 111.942 million euros, in 2017 – 25.879 million euros, in 2018 – 2.973 million euros, in 2019 – 1.887 million euros, in 2020 – 135,512 euros, and in 2021 – 8.802 million euros.

At the same time, the expenses of Trasta komercbanka’s insolvency proceedings in May amounted to 15,823 euros. Including all expenses were expenses for the maintenance of the credit institution’s property and the maintenance of the necessary premises during the insolvency proceedings.

Thus, the expenses of Trasta komercbanka’s insolvency proceedings in the first five months of this year totaled 64,882 euros, but since the bank was declared liquid, the expenses of insolvency proceedings totaled 26.325 million euros, including in 2016 the bank’s insolvency expenses amounted to 10.927 million euros in 2017. EUR 7.264 million in 2018, EUR 1,683 million in 2018, EUR 1,726 million in 2019, EUR 1,532 million in 2020 and EUR 3,128 million in 2021.

The report also shows that guaranteed deposits with the bank on 31 May 2022, as at the end of April, amounted to EUR 3.507 million. At the end of May, other deposits in Trasta komercbanka amounted to EUR 45.099 million.

At the same time, the bank’s subordinated liabilities amounted to EUR 24.914 million at the end of May, while the amount of debt securities issued by the bank was EUR 10.087 million.

The value of Trasta komercbanka’s property for sale at the end of May was 1.836 million euros, demand deposits with credit institutions amounted to 10.488 million euros, and the bank had issued 572,677 euros in loans.

In total, Trasta komercbanka’s assets amounted to EUR 12.955 million at the end of May, while at the end of 2021 the bank’s assets amounted to EUR 13.124 million.

At the end of May 2022, the bank’s capital and reserves were negative – minus 71.391 million euros.

European Central Bankafter Financial and Capital Market Commissions (FCMC), the license issued to Trasta komercbanka was revoked on 4 March 2016, given that the bank had committed serious breaches in a number of important areas of the bank’s activities for a long time. The assessment of the FCMC as the Latvian Resolution Authority that it is not possible for the bank to apply the resolution or save it in the public interest was also taken into account.

“Trasta komercbanka” was declared liquidated by the Vidzeme Suburb Court of the City of Riga on March 14, 2016. On May 10, 2017, Trasta komercbanka was declared insolvent and bankruptcy proceedings were initiated.

Ilmārs Krūms was initially appointed as the bank’s insolvency administrator, but by the decision of the Vidzeme Suburb Court of the City of Riga of 19 June 2017, he was removed from these duties. In his place, the court appointed Armandas Rasas as administrator of the bank’s insolvency proceedings. In May 2017, the FCMC applied to the court for the removal of the Bush from the duties of an administrator, as it was established that the administrator of Trasta komercbanka did not comply with the requirements of the Credit Institutions Law, as well as found that the administrator acted abusively.

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