Published: 16.03.2023

Based on the decision taken by the European Central Bank (ECB) on the withdrawal of the licence of Baltic International Bank SE, Latvijas Banka has prepared an application on the opening of the liquidation proceedings of Baltic International Bank SE for the court.

On Wednesday, 15 March, the application was submitted to the Economic Affairs Court, also asking the court to rule on the appointment of sworn advocate Olavs Cers as the bank's liquidator. The Supervision Committee of Latvijas Banka takes the decision on the submission of the application for the liquidation of a credit institution and the approval of the recommended candidate for the position of a liquidator to the court.

As announced earlier, on 12 December 2022, the Financial and Capital Market Commission (FCMC) recognised Baltic International Bank SE as failing or likely to fail, and decided not to take resolution action of Baltic International Bank SE, i.e. to implement no measures to stabilise the bank's operation.

To ensure the stability of Latvia's financial sector and protect the interests of the bank's customers the FCMC Board, during its extraordinary meeting of 12 December 2022, decided to suspend the provision of financial services at Baltic International Bank SE. Meanwhile, on 10 March 2023, the ECB took a decision to withdraw the licence of Baltic International Bank SE. The decision took effect on 11 March. In turn, pursuant to Section 129, Paragraph one of the Credit Institution Law, in such a situation Latvijas Banka has grounds to submit to the court an application for the liquidation of a credit institution and the appointment of a liquidator.

According to the Credit Institution Law, the liquidator of a credit institution, if the credit institution is to be liquidated by a court ruling, may be sworn advocates, sworn auditors or commercial companies whose primary activity is auditing services.

When selecting candidates for the position of a liquidator, Latvijas Banka works together with the Latvian Council of Sworn Advocates and the Latvian Association of Certified Auditors which submit the lists of candidates to Latvijas Banka based on the criteria of professional adequateness. The Supervision Committee of Latvijas Banka evaluates the outlook on managing the bank's liquidation proceedings offered by the candidates, their current experience and available resources, additionally assessing their understanding of anti-money laundering and combating terrorism financing as well as the information received from law enforcement authorities.

Olavs Cers will become the liquidator of Baltic International Bank SE if he is approved as such by the court.

Please note that as of 1 January 2023, the FCMC has been integrated into Latvijas Banka, and, pursuant to Paragraph 4 of the transitional provisions of the Law on Latvijas Banka, Latvijas Banka is the successor of the rights and liabilities of the FCMC.

Latest News

27.03.2024

Macroeconomic forecasts | March 2024

Latvijas Banka has published its latest macroeconomic forecasts...
19.03.2024

Latvian investment firms recorded a profit of 840 thousand euro in 2023

Latvian investment firms made a profit of 840 thousand euro in...
05.03.2024

Coin Programme for 2024

In 2024, Latvijas Banka intends to issue five collector coins, as well...
04.03.2024

Depositors of the insolvent AS PNB Banka are requested to receive the guaranteed compensation by 15 August 2024

In accordance with the provisions of Paragraph four of Section 3...
26.02.2024

786.1 million non-cash payments totalling 409.3 billion euro were executed in Latvia in 2023

786.1 million customer non-cash payments totalling...
02.02.2024

Representatives of the Single Resolution Board are visiting Latvia

The representatives of the Single Resolution Board visited Latvia on...
23.01.2024

Priorities and the plan of action in the area of resolution and the compensation scheme have been approved

Latvijas Banka has set the 2024–2026 priorities for resolution and...
08.01.2024

Latvijas Banka has submitted the liquidator's petition for the insolvency of Baltic International Bank SE to the court

Latvijas Banka has submitted to the Court of Economic Affairs the...
28.12.2023

Latvijas Banka reviews Regulation on Credit Risk Management

To promote sustainable and prudent lending, Latvijas Banka has revised...
22.12.2023

Information document for making a public offering: A common approach in the Baltic countries

On 18 December, the Council of Latvijas Banka approved the...
21.12.2023

In assessing financial sector institutions in 2024, Latvijas Banka will pay closer attention to IT security and the availability of financial services

Latvijas Banka has set the financial market supervisory priorities...
18.12.2023

Latvijas Banka's plans in the field of statistics until 2027 approved

Today the Council of Latvijas Banka approved the Statistical Programme...