Latvian Central Bank buys nearly 100m euros of ABLV securities

Latvia's central bank said February 19 it had spent nearly 100 million euros buying "high quality securities" in troubled ABLV bank to help it stay liquid.

"The Board of the Bank of Latvia has taken a decision on granting a loan to ABLV Bank in the amount of EUR 97.5 million against safe, high-quality securities," the central bank said on its web page.

The central bank added: "In this financial market transaction, no state budget funds are used in any way. We emphasize that the value of the securitized collateral significantly exceeds the amount of the loan."

The board decision was taken without central bank governor Ilmārs Rimšēvičs, who remains in the custody of KNAB anti-corruption officers.

ABLV bank itself said earlier in the day it was asking for 480 million euros.

Speaking after a behind-closed-doors meeting of the cabinet, financial regulator and central bank, the central bank's board member Edvards Kušners justified the decision and said whether the full 480 million euro request was fulfilled would depend upon consultations with various other bodies including the European Central Bank.
 

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