February 27, 2018 / 3:47 PM / 21 days ago

Latvia's ABLV Bank says can pay liabilities in full

RIGA (Reuters) - Latvia’s ABLV Bank, which the European Central Bank (ECB) has ordered wound up, said on Tuesday it had enough assets to cover its liabilities in full under a voluntary liquidation plan.

FILE PHOTO: A logo of the ABLV Bank is pictured in Riga, Latvia February 18, 2018. REUTERS/Ints Kalnins/File Photo

The ECB said at the weekend that privately held ABLV is likely unable to pay its debts or other liabilities as they fall due.

“We believe our bank will be able to settle with all of our clients in full,” ABLV, Latvia’s third-biggest bank by assets, said in a statement.

“Voluntary liquidation is an important condition for it – the process has to be done as professionally and as transparently as possible, given the history of Latvian insolvency and liquidation processes.”

ABLV, whose customers are mostly residents of the Commonwealth of Independent States, was accused by U.S. authorities of large-scale money laundering this month, leading clients to pull money from the bank.

ABLV denies the accusations.

Most domestic lending in Latvia is conducted by Nordic banks such as Sweden’s SEB and Swedbank. Many of Latvia’s other banks are funded mainly from deposits by non-residents and have only limited domestic lending operations.

Reporting by Gederts Gelzis; Editing by Simon Johnson and Dale Hudson

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