Following an article published in Chronicle.lu last Monday 19 February 2918 concerning the suspension of payments concerning the Latvian bank ABLV Bank Luxembourg S.A., the bank has issued two press reseases emphasising it "stays independent with sufficient liquidity" and "can meet all of its obligations towards clients".
ABLV Bank Luxembourg S.A. has stated that it has "nothing to do with the accusations towards ABLV Bank, AS and has an extremely strong liquidity and a capital adequacy ratio". It added tat "the recent ECB decision to propose the wind up of our subsidiary ABLV Bank Luxembourg, S.A. is a direct consequence of its decision to wind up ABLV Bank, AS.
"With the bank licence still in force and an administrator to be appointed for ABLV Bank, AS, our subsidiary is capable of continuing its operations with a new shareholder. ABLV Bank Luxembourg, S.A. has and has always had an extremely strong liquidity and a capital adequacy ratio, far above the regulatory requirements. The liquidity of the Luxembourg bank fully covers the amount of its clients’ deposits; however, some key Luxembourg counterparties have decided to block ABLV Bank Luxembourg, S.A. USD accounts without any legal ground."
"It is important to mention that ABLV Bank Luxembourg, S.A. was not accused of any wrongdoing in the recent Financial Crimes Enforcement Network report from the US targeting its Latvian shareholder. It has never been suspected in or accused of any kind of wrongdoing or breach of any legislation or regulation applicable to it."
"ABLV Bank Luxembourg, S.A. is an independent bank established in 2012 in order to provide services in wealth management not offered by ABLV Bank, AS. It is managed in Luxembourg and has always fully and strictly complied and will continue to appropriately comply without exception with the international, European and Luxembourg legal and regulatory requirements applicable, including on anti-money laundering and fight against terrorist financing."
On Friday, the Luxembourg District Court postponed for a second time (to Monday 28 February 2018) the hearing in relation to the request of the Commission de Surveillance du Secteur Financier (CSSF) to suspend the debit operations of the ABLV Bank Luxembourg, S. A. clients to protect the bank and stabilise the situation.
"ABLV Bank, AS emphasises that ABLV Bank Luxembourg, S.A. is currently able to meet all of its obligations towards clients. The liquidity of the Luxembourg bank fully covers the amount of its clients’ deposits. The bank is able to reimburse its liabilities towards all of its clients; however, some key Luxembourg counterparties have decided to block ABLV Bank Luxembourg, S.A. USD accounts."
"Most of the clients expressed their strong commitment to increase the cash buffer of ABLV Bank Luxembourg, S.A. by placing long-term deposits or buying securities from the bank’s disposable securities portfolio."
