Lithuania's Siauliu Bankas To Take Over Troubled Ukio

Lithuania's Siauliu Bankas has agreed to acquire the assets and liabilities of Ukio Bankas, which was placed in administration last week, Reuters reported. The country's central bank restricted operations at Ukio and appointed an administrator after Lithuania's No.4 bank ran into financial trouble. Ukio's main shareholder - with a 65 percent stake - is Vladimir Romanov, owner of cash-strapped Scottish soccer club Hearts. "The most important task now is to resume the provision of services to the former customers of Ukio Bankas," Audrius Ziugzda, CEO of Siauliu Bankas, said in a statement. "This will require considerable effort and time, which we are prepared to give." Siauliu Bankas is 20 percent owned by the European Bank for Reconstruction and Development (EBRD), which will provide 20 million euros ($26.32 million) in subordinated debt to strengthen Siauliu's capital base, facilitate the takeover process and help to stabilise Lithuania's financial sector. Read more.