The Developments in the Bank of Latvia and Situation with Regard to AB.LV Bank
- The Latvian government is convinced of the stability of the national financial system. The necessary steps have been taken to ensure that the international financial commitments of Latvia and the interests of the people of Latvia are fully respected. The work of law-enforcement institutions is aimed at independent, responsible and as prompt treatment of the situation as possible and actions in accordance with the Latvian legislation.
- The Prime Minister has drawn attention to the fact that the Latvian government and law-enforcement institutions treat very seriously any allegations regarding the public officials' unlawful conduct. Organizations and persons who have evidence to prove such information are responsible for transmitting this information to responsible authorities. Legally-based solutions are the only way to tackle the situation.
- The actions taken by the Corruption Prevention and Combatting Bureau of Latvia (KNAB) against the President of the Bank of Latvia are not related to any of currently operating credit institutions. The Bank of Latvia has a capable board and council, and it works effectively in its usual pace. The situation with AB.LV bank is not related to the investigation carried out by KNAB.
- Latvia complies and will comply with its international financial obligations, and the events surrounding the President of the Bank of Latvia will have no impact on these processes.
- The government fully trusts the Corruption Prevention and Combatting Bureau of Latvia (KNAB) and is ready to provide it with all the necessary support, preventing any influence on the work of the Bureau.
- According to the recommendation of the European Central Bank, limitations have been imposed to the operation of AB.LV bank, which means that it is possible for the bank to receive all types of payments, while outgoing payments are limited. In addition, there are no limitations on disposing the securities, thereby accumulating the funds required for liquidity.
- The European Central Bank has taken such a decision to stop the rapid outflow of funds from AB.LV bank and give time to prove that the bank has both a long-term business plan and the possibility to provide the necessary funds for short-term liquidity. AB.LV bank is currently drafting such a plan, and promises that AB.LV bank’s representatives will submit it to the Financial and Capital Market Commission (FCMC) by the 22.02.2018.
State Chancellery Republic of Latvia
Press secretary to the Cabinet of Ministers