2011-08-31
Repayment of subordinated loan before maturity allowed
The Board of the Bank of Lithuania allowed AB SEB bankas, who aims at optimising its capital base and reducing its borrowing costs, to repay to the Skandinaviska Enskilda Banken AB financial group the subordinated loan in the amount of EUR 42,000,000 (LTL 145,017,600), which was received under the 22 September 2006 loan agreement with Skandinaviska Enskilda Banken AB, before maturity.
AB SEB bankas states its capital ratio will increase in 2012–2013 due to its profitable operation, and in the event of emergence of additional capital requirement it would attract Tier II capital from its parent bank. Where necessary, it would strengthen its Tier I capital as well.
Discussing this issue, the Board of the Bank of Lithuania closely examined the possibilities of AB SEB bankas to comply with the capital adequacy ratio in the future.
The Board of the Bank of Lithuania took into account the results of the stress-testing of AB SEB bankas. According to the results, the bank’s capitalization level is high. However, during the discussion it was emphasised that AB SEB bankas must have a capital base adequate to absorb potential credit losses if the recovery of the economy would not be as strong as expected and the Bank’s optimistic expectations regarding the dynamics of its specific provisions would not prove out. It was noted that all banks, in order to withstand potential risks, should assess and hold sufficient capital reserves irrespective of whether they have a parent bank or not.
A new sample coin approved
The Board of the Bank of Lithuania approved the sample 50 litas collector (commemorative) coin dedicated to Vilnius Upper Castle (from the series “Historical and Architectural Monuments of Lithuania”) today. The coin is to be launched in September this year.
The author of the coin’s graphic design and plaster model is Rytas Jonas Belevičius. The sample coin was produced at the UAB Lithuanian Mint.