The Court of Economic Affairs in Latvia has satisfied the liquidation request submitted by the Bank of Latvia for Baltic International Bank, as confirmed by the court of law.
Lawyer Olavs Cers is appointed as the bank’s liquidator.
The verdict is grounds for the termination of the lawsuit in civil cases initiated against Baltic International Bank, as well as the termination of the enforcement of judgments in cases concerning the recovery of sums imposed but not recovered from the credit institution, the court stresses.
The verdict is final and is not subject to appeal.
The request to initiate the bank’s liquidation was submitted based on the decision made by the European Central Bank to annul Baltic International Bank’s licence. Decisions regarding the liquidation request and appointment of the insolvency administrator was accepted by the Monitoring Committee of the Bank of Latvia.
On the 12th of December 2022 the Finance and Capital Market Commission (FKTK), which is now part of the Bank of Latvia, declared Baltic International Bank a financial institution already or soon to be in financial difficulties, and decided not to regulate the bank – no measures were taken to stabilise the bank’s operations.
According to the Credit Institution Law, sworn attorneys, sworn auditors or commercial associations operating in audit services are allowed to be appointed as liquidators of credit institutions.
Shareholders of Baltic International Bank announced after the court presented its verdict that
they do not agree with FKTK’s decision to terminate the bank and want to continue operations.
Last year, according to provisional data, Baltic International Bank operated with losses of EUR 26.773 million, which is 5.3 times more when compared with 2021. The bank’s assets, as of the 31st of December 2022, accounted for EUR 139.051 million, which is 33.8% or EUR 71.12 million less when compared with the end of 2021, when the bank’s assets accounted for EUR 210.171 million.
The bank’s biggest shareholders are Valērijs Belokoņs (38.13%) and Vilorijs Belokoņs (21.3%). Asset-wise Baltic International Bank was the 10th biggest bank in Latvia at the end of 2021.
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