Resolutions of the Board of the Bank of Lithuania
Permission to establish a new credit union issued
The Board of the Bank of Lithuania allowed to establish a credit union “LTL Kredito unija”. The union’s articles of association define that natural entities may become members of this union, if they reside, work or study in the territory of the Vilnius City Municipality or in the territories of the neighbouring Vilnius and Trakai District Municipalities.
According to the founders of the union, preference in the operation of the union will be given to financial services to small business and natural persons. Its registered office will be located in Vilnius.
Currently, 74 credit unions and the Central Credit Union of Lithuania are operating in Lithuania.
Licence of an insurance brokerage company withdrawn for “RG uno”
The Board of the Bank of Lithuania withdrew the licence of an insurance brokerage company issued to UADBB “RG uno” (Vilnius) by the resolution of the Insurance Supervisory Commission of the Republic of Lithuania of 19 May 2009.
UADBB “RG uno” informed that it does not engage in an insurance brokerage activity, therefore, it applied to the supervisory authority for the withdrawal of the licence.
Permission issued to “Swedbank”, AB to repay two subordinated loans
Under the request of “Swedbank”, AB, the Board of the Bank of Lithuania issued permission to it to repay before maturity two subordinated loans obtained from the Estonian bank “Swedbank” AS: one loan in the amount of EUR 60 million (LTL 207.2 million) and another loan in the amount of EUR 70 million (LTL 241.7 million). These loans were received according to the agreements of 8 February 2008 and 31 August 2006 and mature respectively on 1 September 2017 and 12 February 2016.
By taking this decision, the Board of the Bank of Lithuania considered the fact that the capital adequacy ratio of both “Swedbank”, AB and the bank group after the repayment of the said loans will remain significantly higher than the minimum capital adequacy ratio set by the Bank of Lithuania.
At the end of the first quarter of 2012, the capital adequacy ratio of “Swedbank”, AB comprised 19.1 per cent, whereas that of the bank group was 18.4 per cent.
After repaying these subordinated loans, the bank “Swedbank”, AB will reduce borrowing costs and the current significant liquidity surplus.
According to the planned amendments to the European Union legislation, known as Basel III, the highest quality Tier I capital will become the most significant for banks (subordinated loans are attributed to Tier II capital).
Results of the graphic design competition for the coin dedicated to the 150th anniversary of the birth of Maironis approved
The Board of the Bank of Lithuania approved the results of the graphic design competition for the 50 litas collector (commemorative) coin dedicated to the 150th anniversary of the birth of Maironis (Jonas Mačiulis). The first place was awarded to Rytas Jonas Belevičius, the second place to Rūta Ona Čigriejūtė, while the third place to Giedrius Paulauskis.
The Board also approved the graphic designs for the obverse and reverse of this 50 litas coin created by R. J. Belevičius. The Board approved the inscription on the edge of the coin: „GINKIME KALBĄ, ŽEMĘ, JOS BŪDĄ!“ (Protect language, land, its nature).
The issue of the collector coin dedicated to the 150th anniversary of the birth of Maironis is planned for the third quarter of this year.
Thirteen artists took place in the competition for the creation of a graphic design for this coin. After evaluating the works presented by them, the Money Design and Production Commission of the Board of the Bank of Lithuania announced one more competition and offered four artists to participate in it.