She explained that most depositors will receive the full guaranteed compensation of their deposits.
Purgaile also noted that the FKTK is currently looking for a solution to pay the bank's depositors the guaranteed deposits, and it is possible that this will be done without the mediation of another credit institution.
She also explained that the total amount of deposits and how much will have to be paid out in guaranteed compensation are still being specified. According to operational data, the bank's assets are sufficient to repay the compensations paid to the Deposit Guarantee Fund.
On December 2, 280 Baltic International Bank customers had a bank account balance of zero. According to the Law on Deposit Guarantees, the state guarantees payment of compensation for all types of deposits up to 100,000 euros. According to preliminary estimates, 1,012 bank customers will receive their deposits in full in the form of guaranteed compensation.
Evaluating the impact on society, the FCMC decided not to carry out bank resolution or stabilization of the bank's operations. Purgaile said that considering the fact that the bank is one of the smallest in Latvia and has a small number of customers, the bank's closure will not have an impact on the financial sector.
As previously reported by LSM, the financial supervisory authority has recognized Baltic International Bank as "failing or likely to fail" and decided not to take resolution action, which means no bail-out or similar action in order to stabilize the bank's activities.
A unit of special police on Monday evening raided Baltic International Bank in Riga Old City, breaking through the entrance door of the bank's head office, LETA observed. According to unconfirmed information, police were searching also the residences of the bank's managers.
At the end of 2021, Baltic International Bank was the tenth largest bank in Latvia in terms of assets. The bank's largest shareholders were Valeri Belokon (38.13 percent) and Vilori Belokon (21.3 percent).
In the first nine months of this year, Baltic International Bank posted a loss of EUR 7.186 million. The bank's assets as of September 30, 2022, stood at EUR 195.29 million.
Contact numbers for customers:
- The payment of guaranteed compensation: +371 67022801
- On transactions in financial instruments: +371 67022807
- Other issues: +371 67022819
FKTK also has a dedicated e-mail address: [email protected]