VILNIUS: Lithuania’s central bank suspended operations at Ukio bankas yesterday, citing irregularities.
The bank is majority-owned by Russian born-businessman Vladimir Romanov and is the sixth-biggest in Lithuania.
The central bank said that it had established that the bank had been involved in risky activities by assessing “credit risks inappropriately” and no longer complied with the regulatory liquidity ratio.
“The board of the Bank of Lithuania adopted the decision to announce the restriction of the activities of AB Ukio bankas and appointed a temporary administrator,” it said in a statement.
Central Bank Governor Vitas Vasiliauskas said yesterday the administrator was given six days to assess the possibilities and means to restore the bank’s activities.
“Our priority is clear—continuity of the operation of the bank in fulfilling obligations to its clients and ensuring that the restructuring would be the most effective, rational and cheapest means for the state in solving the problem,” he said in a statement.
The Baltic state’s Prime Minister Algirdas Butkevicius said he supported the move and insisted it would not have a major impact on the economy of this EU Baltic state of three million.
He also vowed his left-wing government would fulfill its obligation to guarantee customers’ deposits up to ¤100,000 ($134,000).
The move came more than a year after Lithuania’s government nationalised Snoras, the EU state’s fourth-biggest bank.
But Vasiliauskas said that the situation was different as Snoras’ owners were charged with financial crimes and are currently fighting extradition in London.
“We have clearly seen intentional actions there, and here it’s more misconduct,” he said.
Romanov, who owns Scotland’s top-flight football club, the Hearts, and the Zalgiris Kaunas basketball club, hold 64.9 percent of Ukio bankas shares.
Prosecutors said Tuesday they had launched a probe into the “squandering of property” and would be looking into “suspicious contracts” dating between 2005-2012. No charges have yet been pressed, they said.
AFP
