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Central bank loans ABLV nearly 300 million in a week

The Board of Governors of the Bank of Latvia has decided to grant another loan to provide liquidity to the troubled commercial bank "ABLV Bank". The amount of this loan is nearly 200 million euros. The total amount of the loans granted to ABLV Bank this week amounts to 297.2 million euros. 

Earlier in the week ABLV said it intended to request 480 million euros' worth of support, but was initially given a liquidity lifeline of 97.5 million euros.

"Acting within the existing framework of the Eurosystem and taking into account the views expressed by the European Central Bank and the Financial and Capital Market Commission, the Bank of Latvia issued a total of EUR 297.2 million in loans to ABLV Bank this week," said the spokeswoman of the Bank of Latvia Janis Silakalns.

The total amount of the loan was determined by the total value of collateral submitted by ABLV Bank in the form of assorted securities, the central bank said, stressing that "no state budget funds were used in any way" and that the value of the collateral offered was around double the value of the loan.

The support offered to ABLV is somewhat ironic given the fact that the central bank governor, Ilmārs Rimšēvičs implied during interviews this week while he is embroiled in a scandal of his own that banks specializing in non-resident deposits, such as ABLV and Norvik bank, were behind a conspiracy to oust him from his job.

However his own case, in which he is suspected of soliciting bribes, has nothing to do with any bank currently operating in Latvia, according to investigating officers of the KNAB anti-corruption agency.   

 

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