Liquidation of ABLV Bank in Latvia (Part II)

Previously we have discussed the liquidation of ABLV Bank in Latvia. The liquidation process includes the determined procedure by liquidator for coverage of costs and debts by liquidator. 

In the process of credit institution liquidation (incl. self-liquidation of ABLV Bank in Latvia), only for those creditors shall be performed payout for deposits, if depositor is identified and investigated as a customer in accordance with the requirements of AML Law. 

After covering expenses of the insolvency proceedings or liquidation, the remaining funds are distributed for covering creditors` claims principal sums (without %) as follows:

First of the claims of the ABLV Bank which are going to be satisfied are payments to depositors who are entitled to a guaranteed compensation in the amount of the covered deposit;

Payments to depositors who are natural persons, micro-enterprises, small and medium-sized enterprises, in the amount of the part of the deposit which exceeds the covered deposit, except deposits attracted by using branch of the credit institution located outside EU, are following to claims of the ABLV Bank for guaranteed compensations;

Employees who have submitted the claims of the ABLV Bank rank as third ones regarding the remuneration for work for the last three months of employment relations in the 12 month period prior to liquidation of ABLV Bank in Latvia;

After claims of the employees taxes and other payments (debts) to the State budget and the budgets of local governments follows, as well as transit credits and interest payments for the use of such credits;

As fifth follows such debts to creditors which have arisen from credit institution accepting, but failing to fulfil, payment orders from a client regarding money transfer to accounts of the State or local government budgets;

State claims regarding repayment of credits guaranteed by the State are sixt in turn.


Read our next article about liquidation of the ABLV Bank in Latvia Part II, to learn which of the the remaining funds shall be distributed for coverage, after complete coverage of the above mentioned creditors' claims.


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Liquidation of ABLV Bank in Latvia (Part II)

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