"The portfolio consists of several thousand mortgage loans with a total exposure above EUR 170 million. Given the materiality of the deal, the planned completion date is in the second half of this year, and all customers affected will be contacted in advance with the relevant information including how repayments should be made," said a statement from Citadele.
The price at which Citadele acquired the assets was not disclosed.
The agreement stipulates that existing customer loan agreements with ABLV Bank will maintain their current terms until the end of the contract.
“We are a Baltic bank with local footprint, and our aim is to offer the most up-to-date financial services with a unique service approach. The acquisition of this high-quality portfolio is another step in our growth journey and our commitment to support the local customers. We will be pleased to offer our new customers access to our full range of financial services and products with special terms and conditions,” said Johan Åkerblom, Chairman of the Management Board, Citadele Bank.
“One of our main aims has been to recoup the loans in order to collect the funds we need to satisfy claims of creditors. We are therefore pleased that one of our most valuable assets—a significant portion of our mortgage portfolio—as well as future customer service will be taken over by Citadele Bank, who also disbursed state-guaranteed compensation to ABLV’s former customers,” said Andris Kovaļčuks, liquidator for
As reported by LSM at the time, ABLV collapsed in 2018 in the wake of allegations of money-laundering on a massive scale by the auhorities in the United States. It has been in a state of liquidation in the three years since, though it continues to generate headlines on a regular basis.
Citadele was itself formed from some of the assets left behind following the collapse of the notorious Parex Bank a decade earlier.