Bank of Lithuania

Permission issued to AB SEB bankas to repay two subordinated loans

Taking into consideration the request by AB SEB bankas, the Board of the Bank of Lithuania issued to it a permission which allows the bank to make premature repayment of the following two subordinated loans: one loan amounts to EUR 25 million (an equivalent value is LTL 86.32 million) and another one amounts to EUR 45 million (an equivalent value is LTL 155.376 million). These loans were received from Skandinaviska Enskilda Banken AB under the agreements of 14 December 2005 and 26 June 2007, and they are to mature respectively on 14 December 2015 and 26 June 2017.

AB SEB bankas pointed out there was no further need for these subordinated loans and it would maintain sufficient capitalisation level after their repayment which would also allow for reducing the bank’s borrowing costs.

Subordinated loans are permitted as Tier II capital. Under the planned amendments to the European Union legislation known as Basel III, the most significant for banks will be the highest quality Tier I capital.

Insurance activity licence of ADB “ERGO Lietuva” amended

The Board of the Bank of Lithuania made amendments to the insurance activity licence issued to ADB “ERGO Lietuva” by the Insurance Supervisory Commission of the Republic of Lithuania on 15 March 2005.

The licence now contains another legal status of the company, which has been changed from a closed joint stock insurance company into a joint stock insurance company.  The part of the licence, which allowed for insurance activities related with the third party liability of the operators of flying machines and legal expenses. ADB “ERGO Lietuva” does not have any insurance agreements of this type in effect at the present time.

Licence of an insurance brokerage company withdrawn for UADBB “Swedbank draudimo brokeris”

The Board of the Bank of Lithuania decided to cancel the insurance brokerage company activity licence of UADBB “Swedbank draudimo brokeris”. The decision was taken following a request by UADBB “Swedbank draudimo brokeris”.

AB Swedbank decided to terminate the activities of this company and wind it up. It does not have any liabilities to insurance companies or policy holders.

A sample coin dedicated to art approved

The Board of the Bank of Lithuania approved the 10 litas sample collectors (commemorative) coin dedicated to art.

The graphic design for the coin was created by Rūta Ničajienė, and the plaster model was made by Giedrius Paulauskis.  The sample was minted by UAB “Lietuvos monetų kalykla” (Lithuanian Mint).

The new coin from series “Lithuanian Culture” is to be issued in June.