ABLV bank will start paying out customers March 3

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ABLV bank, which has gone into liquidation following the release of a damning report from the U.S. Treasury, will start paying out its depositors March 3, officials announced March 1. 

"The Board of the Financial and Capital Market Commission (FKTK) has decided on the procedure for pay-out of guaranteed compensations to ABLV Bank AS depositors. Payments of guaranteed compensations up to EUR 100 000 EUR will be possible to disburse at the Latvian commercial bank selected by FKTK starting from 3 March 2018," a statement from the regulator said. 

No funds from the Latvian deposit guarantee fund (DGF) will be used for payment of guaranteed compensations because ABLV Bank AS has sufficient financial resources, FKTK added.

A total of EUR 480 million is required, FKTK said - coincidentally the same amount ABLV had requested as a loan from the Latvian central bank in the days leading up to its liquidation on orders from the European Central Bank. 

Eligible depositors will receive a maximum for EUR 100 000 to each customer, paid out via another Latvian commercial bank yet to be named. In a previous case, following the collapse of Latvijas Krajbanka in 2011, depositors were paid out via Citadele bank. 

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