Bank of Lithuania

Another payment institution licence will be issued

The Board of the Bank of Lithuania decided to issue to UAB “Godlija” (Radviliškis) a payment institution licence which gives the right to provide the payment service specified in Article 5(6) of the Law on Payments of the Republic of Lithuania – money remittances. By now, 20 enterprises have been issued licences for the provision of payment services.

The subordinated loan was permitted to be used longer

The Board of the Bank of Lithuania granted permission to Medicinos bankas to use a EUR 10 million (equivalent to LTL 34.528 million) subordinated loan until 1 June 2020 and include it into Tier II capital of the bank. The bank received this loan from its shareholder Saulius Karosas on 17 June 2008. The term of the loan was extended for three years on the basis of the subordinated loan contract amendment signed last summer and this December – for another four years.

The bank branch was permitted to discontinue its activities

The Board of the Bank of Lithuania gave permission to Allied Irish Banks, p.l.c. Lithuanian branch to discontinue its activities.

The Bank’s representatives informed that the branch was not providing any financial services licensed, had no customers and was not performing any activities that could preclude the branch from the cancellation of its business. The branch activities performed in administering loans of other banks operating in Lithuania were terminated after the cancellation of loan contracts signed with respective banks and after transferring loan administration functions to the banks themselves, whereas the loan portfolio of the branch was transferred to Swedbank, AB. Representatives of Allied Irish Banks, p.l.c. stated that settlements with creditors will be made by using the funds of the branch itself and, if needed, of the bank. Moreover, it was stated that the branch’s creditors will be able to present any claims regarding the branch’s outstanding liabilities after its removal from the Register of Legal Persons directly to the bank itself.