Lithuania

Ukio Banko Investicine Grupe, or UBIG, the Lithuanian investment company that controls Scottish soccer club Heart of Midlothian, is insolvent, said the Baltic nation’s Department of Enterprise Bankruptcy Management today on its website, Bloomberg reported. The department, part of the Economy Ministry, said that Kaunas-based UBIG, at its own request, had been placed on a list of companies unable or unwilling to meet their obligations. UBIG is a sister company of Ukio Bankas AB, a lender that Lithuania’s central bank closed in February for risky lending to related parties.
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A Lithuanian court began bankruptcy proceedings against Ukio Bankas AB at the request of the central bank, which shut the Kaunas-based lender in February because of risky loans to related parties, Bloomberg reported. Kaunas District Court today also issued a decree naming the firm Valnetas UAB as Ukio’s bankruptcy administrator, the court said on its website. The decisions may be appealed within 10 days, according to the statement. Ukio was Lithuania’s fourth-largest bank by deposits when it was closed.
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A Lithuanian court said it would consider starting bankruptcy proceedings against Ukio Bankas AB at the request of the central bank, which shut the lender in February citing risky loans to related parties, Bloomberg reported. Kaunas District Court agreed today to consider the Bank of Lithuania’s request in a written process with a hearing on May 2, court spokeswoman Gintare Putnikiene said by phone. Ukio was Lithuania’s fourth-largest bank by deposits when it was closed.
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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.
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Bankas Snoras AB, Lithuania's fifth- biggest bank by assets, is insolvent and will file for court protection from creditors to avoid a costly bailout for taxpayers, Bloomberg News reported today. The bank's financial situation is "worse than previously identified" and saving the bank "would cost significantly more and would take longer than the available liquidity" at Snoras, the central bank said in a statement. Some 3.4 billion litai ($1.3 billion) in assets are missing, Governor Vitas Vasiliauskas added. The government took over Snoras on Nov.
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Lithuania’s banking regulator said hundreds of millions of dollars in assets may be missing from Bankas Snoras AB after the government took over the Baltic nation’s fifth-biggest lender on concern it may be insolvent, Bloomberg reported. More than 1 billion litai ($392 million) of assets may be unaccounted for, central bank Governor Vitas Vasiliauskas told reporters yesterday in the capital, Vilnius. Snoras’s operations were halted until Nov. 21 and a state administrator appointed after the lender ignored recommendations to reduce its credit risk, the regulator said in a statement.
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As Greece resists European demands for wider austerity measures, the contrast with the Baltic states couldn't be starker, The Wall Street Journal reported. Faced with similar market worries about their fiscal positions a year ago, Estonia, Lithuania and Latvia bit the bullet. Now there is light on the horizon: Standard & Poor's has lifted its rating outlook on all three to stable from negative, citing the successes achieved in fiscal consolidation. Greece should take note. All three have retained effective currency pegs rather than take the option of devaluation.
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Swedish banking group SEB said on Tuesday it would inject more capital into its operations in Lithuania and Latvia due to rising bad loan provisions. SEB spokeswoman Viveka Hirdman-Ryrberg said the bank made 5.95 billion Swedish crowns ($847 million) of loan loss provisions in the first half of the year due to the global financial crisis. Lithuania's economy nosedived into its worst recession since early 1990s with gross domestic product falling 20.2 percent in the second quarter.
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Lithuania’s economy plunged a preliminary 22.4 percent in the second quarter, the worst recession since 1990 independence, as output crashed and retail sales slumped, Bloomberg reported. The decline, the deepest in the European Union, compares with a revised 13.3 percent contraction in the first quarter, the Vilnius-based statistics office said in an e-mailed statement today. The economy grew 5.2 percent in the same period last year.
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Latvia faces bankruptcy in three months if it fails to deliver budget cuts required by the International Monetary Fund and the next installment of its bailout is delayed, Premier-designate Valdis Dombrovskis said. Latvia, in the grip of the severest crisis since independence in 1991, was granted a €7.5 billion ($9.5 billion) bailout last quarter after the economy shrank 10.5 percent and the state seized its second biggest bank. The government fell on Feb. 20 after agreeing to budget cuts needed to keep the deficit below 5 percent of gross domestic product.
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