Coalition partners have informally confirmed support for cutting bank liquidators' pay - Kucinskis

RIGA - Last weekend, Partners in Latvia’s government coalition informally confirmed their support for amendments to the Credit Institutions Law intended to limit bank liquidators’ remuneration, Prime Minister Maris Kucinskis (Greens/Farmers) said on Latvian Television this morning.

He said that already last Saturday he discussed the planned amendments with President Raimonds Vejonis and Saeima Speaker Inara Murniece (National Alliance). “The Saeima speaker immediately contacted the leaders of ruling Saeima factions, and now there is full conformation of… of the coalition’s agreement,” Kucinskis said.

The premier indicated that over the past week the owners of struggling ABLV Bank have been doing everything to meet the European Central Bank’s requirements and that in this case there will be no need to use the Deposit Guarantee Fund because the bank has the necessary amount of money at its disposal. “If someone thinks this [the winding up of the bank) might be an opportunity to pocket some money, I am saying today that we will do absolutely everything to make the persons who will be appointed [the bank’s liquidator] report on every move he makes,” Kucinskis said.

The prime minister also noted that the European Central Bank has yet to take a concrete decision on ABLV Bank’s further fate.

As reported, the Finance Ministry will submit an urgent bill for amendments to the Credit Institution Law, which would foresee restrictions in the compensation amounts for bank liquidators, Finance Minister Dana Reizniece-Ozola (Greens/Farmers) said last Saturday.

The ministry plans to submit the proposal to Saeima on Monday.

With the planned amendments, the ministry hopes to restrict the administrative compensation levels for bank liquidators and insolvency administrators, so that more of these recovered funds end up with the creditors.

If this proposal is approved, it would already be in place if ABLV Bank goes into liquidation.

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