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Citadele completes partial purchase of ABLV mortgage assets

The first phase of a deal between Citadele and ABLV for the purchase of the majority of ABLV’s mortgage portfolio has been completed, Citadele announced July 5.

Citadele’s mortgage portfolio has now been expanded by several thousand mortgage agreements totalling more than €120 million.

"As the first phase of the deal is completed, customers whose loans have been transferred to Citadele will be identified and informed personally about the new process for repaying their loans. Phase two is expected to be finished by the end of the year, and will involve mortgage agreements worth around €50 million," a statement said.

“Having transferred the majority of our mortgage loan portfolio to Citadele, we have now completed our most significant asset reclamation project and have accumulated enough funds to satisfy our creditors. We are pleased that we completed the first phase in a relatively short amount of time, and that Citadele has successfully taken over serving our customers,” said Andris Kovaļčuks, liquidator of ABLV Bank.

The price paid by Citadele for ABLV's mortgage portfolio has not been made public.

As previously reported by LSM, ABLV collapsed and subsequently went into administration in 2018 after being accused by US law enforcement agencies of "institutionalized money laundering".

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