2017-08-10
Activities of Baltija credit union restricted, temporary administrator appointed
Having determined that the likely dissipation of high-value assets of Baltija credit union may lead to a significant loss (nearly EUR 2 million), and due to threats to the interests of depositors, other creditors and clients, the Supervision Service of the Bank of Lithuania has restricted this credit union’s activities until 6 October of this year, and appointed its temporary administrator. The credit union may not provide financial services during the restriction period.
The Bank of Lithuania applied this enforcement measure after considering the circumstances identified during a non-target inspection and the fact that the Financial Crime Investigation Service has been carrying out a pre-trial investigation regarding likely dissipation of high-value assets. Managers and employees of the credit union are suspected of likely dissipation of nearly EUR 2 million, which may lead to a significant loss, while the credit union itself will not be able to comply with prudential requirements.
According to the data of 30 June of this year, the assets of Baltija credit union amounted to EUR 11.75 million; this institution’s membership comprised slightly over 2 thousand, and it was the 19th credit union in Lithuania by asset size.
The Bank of Lithuania has appointed a temporary administrator – UAB Insolvensa, obligating it to submit conclusions by 1 September 2017 concerning the Baltija credit union’s financial standing, and how the interests of its depositors, other creditors and clients could be protected. Upon their assessment, it will be decided on the outlook for the activities of this credit institution.
While the credit union’s financial standing is being assessed and no decision on the prospects for its activities is taken, depositors do not need to do anything. The deposits with this credit union are insured by the state enterprise Indėlių ir investicijų draudimas according to the procedure laid down in the Law on Insurance of Deposits and Liabilities to Investors.
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Additional information is provided by the temporary administrator by phone (8 5) 273 4773.