EBA欧洲银行-ABLV-Bank-Luxembourg-SA_Notification-letter_2页_395kb

ABLV Bank Luxembourg S.A. Deposit Guarantee Scheme Pay-out Summary

Core Content

This document outlines the process and circumstances surrounding the pay-out of deposits at ABLV Bank Luxembourg S.A. (ABLV Bank) under the Luxembourg deposit guarantee scheme, Fonds de Garantie des Dépôts Luxembourg (FGDL). The notification is issued by the Commission de Surveillance du Secteur Financier (CSSF), the designated authority for the FGDL, in accordance with the European Banking Authority (EBA) Decision on notifications relating to Directive 2014/49/EU on deposit guarantee schemes.

Key Events

• 19 February 2018:

  • The European Central Bank (ECB) requested the imposition of a moratorium on ABLV Bank AS, the parent company of ABLV Bank Luxembourg S.A.
  • The Financial and Capital Markets Commission (FCMC) of Latvia imposed a moratorium on ABLV Bank AS, including a prohibition of all payments by the bank on its financial liabilities.
  • The CSSF informed the public that it had filed an application with the Luxembourg District Court to suspend payments by ABLV Bank Luxembourg S.A., in line with the ECB's request.

• 24 February 2018:

  • The CSSF determined that deposits at ABLV Bank Luxembourg S.A. were unavailable.
  • This decision was based on the Single Resolution Board's (SRB) ruling on 23 February 2018 that resolution action was not in the public interest for ABLV Bank AS and its Luxembourg subsidiary.

• 9 March 2018:

  • The Luxembourg District Court confirmed the suspension of payments for ABLV Bank Luxembourg S.A. and appointed new administrators to manage the bank's assets.

• 29 February 2018:

  • Eligible depositors received an information letter and a form to provide their new bank account details for reimbursement.
  • The FGDL requested depositors to return the completed and signed form to facilitate the pay-out process.

Pay-out Arrangements

• The FGDL initiated the pay-out procedure seven working days after the determination of deposit unavailability by the CSSF on 24 February 2018.
• Reimbursement is conducted via bank transfer in euros, provided that the depositor has communicated a new account number to the FGDL and that their entitlement to reimbursement has been confirmed.
• The repayment process is ongoing at the time of this notice.
• The amount of covered deposits reported by the bank is less than EUR 14 million.

Cross-border Considerations

• There were no branches of ABLV Bank Luxembourg S.A. established in other countries at the time of the deposit unavailability determination.
• Therefore, cross-border cooperation between the FGDL and other deposit guarantee schemes was not required.

Legal Basis

• The suspension of payments and the determination of deposit unavailability were based on Article 122(6) of the Law of 2015 on the failure of credit institutions and certain investment firms.
• The pay-out procedure is governed by Article 176(3) of the same law, which outlines the conditions and methods for reimbursing eligible deposits.

Conclusion

The pay-out process for ABLV Bank Luxembourg S.A. was initiated following the determination of deposit unavailability by the CSSF. The FGDL is responsible for the reimbursement, which is being conducted via bank transfer in euros. The process is ongoing, and the amount of covered deposits is reported to be under EUR 14 million. No cross-border cooperation was necessary due to the absence of branches in other countries.