ABLV bank votes itself out of business

ABLV bank, having already described itself as being liquidated by order of the European Central Bank, on the evening of February 26 confirmed the process by voting to wind itself up.

A statement said:

In order to maximally protect the interests of clients and creditors, on February 26, ABLV Bank has adopted an extraordinary general meeting resolution on self-liquidation. ABLV Bank believes that in this way, it will be best able to ensure the protection of its assets to settle with all customers.

"Given the insolvency and liquidation processes that have taken place in Latvia so far, we believe that this is the right decision to be made after the announcement by the European Central Bank of the winding-up proceedings. The financial position of the Bank is excellent, therefore, we must take care of each client and protect his rights," says Ernests Bernis, Chairman of the Board of ABLV Bank.

"The decision is very difficult, but is the most appropriate way," emphasizes Ernests Bernis.

The bank will provide more information on the decision on Tuesday, February 27th.

Despite ABLV's own description that it was being forced into liquidation by "political" rather than financial considerations, the last 24 hours had seen speculation that it might continue in some form once it has paid out to depositors.

The move came just a few hours after it published a fairly upbeat overview of its loans portfolio, suggesting it was still trying to prove itself as a viable going concern.

However, the decision taken a few hours later should usher in a speedier resolution of the bank's affairs.

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