(MENAFN) According to the European Union's Single Resolution Board and the European Central Bank, ABLV Bank of Latvia is expected to fail and will be concluded as saving it is not in the public interest.
As the US authorities have accused it of large-scale money laundering, ABLV failed this week to come up with a survival plan as customers fled and management could not come up with sufficient cash, despite offers of emergency central bank liquidity.
The country's third-biggest bank has been on the spot since US authorities accused it of covering up money laundering, bribing officials and facilitating the breach of sanctions against North Korea.
The ECB, ABLV's supervisor said: "Due to the significant deterioration of its liquidity, the bank is likely unable to pay its debts or other liabilities as they fall due, the bank did not have sufficient funds which are immediately available to withstand stressed outflows of deposits before the payout procedure of the Latvian deposit guarantee fund starts."
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