Baltic International Bank liquidation process approved

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The Court of Economic Affairs has approved the liquidation application of Baltic International Bank submitted by the Bank of Latvia, the LETA news agency reported March 24.

The court appointed lawyer Olavs Cers as the liquidator of the bank.

The judgment is the basis for suspending legal proceedings in civil cases initiated against Baltic International Bank and terminating judgment enforcement proceedings in cases regarding the recovery of sums ordered but not collected from the credit institution, the court said.

The judgment is final and cannot be appealed.

The application to the court to start the liquidation process of the bank was submitted based on the decision of the European Central Bank (ECB) to cancel the license of "Baltic International Bank". 

As previously reported, on December 12, 2022, Latvia's banking regulator the Financial and Capital Market Commission (FKTK) recognised Baltic International Bank SE as failing or likely to fail, and suspended its operations.

At the start of the year, FKTK was absorbed into the structure of Latvijas Banka, which accounts for the potentially confusing appearance of two institutions – FKTK and the central bank – handling the case of BIB. 

On March 10, 2023, the ECB took a decision to withdraw the licence of Baltic International Bank SE. The decision took effect on March 11.

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