V. Vasiliauskas: The priority of the Bank of Lithuania—continuity of the banking operations of Ukio bankas

2/12/2013 6:48 AM EST

NASDAQ OMX Vilnius
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V. Vasiliauskas: The priority of the Bank of Lithuania—continuity of the
banking operations of Ukio bankas

Vilnius, Lithuania, 2013-02-12 12:48 CET (GLOBE NEWSWIRE) -- The Board of the
Bank of Lithuania considers its highest priority the restructuring of Ukio
bankas that would best guarantee further fulfilling of obligations to its
clients, and would have the least influence on public finances. Such a
provision was given to the temporary bank administrator, who has been ordered
to assess, in no more than six days, the possibilities and means to restore the
bank’s activities 

“A lot will depend on the actual financial standing of the bank, which will be
registered by the administrator and the auditors who inspect the bank, but our
priority is clear—continuity of the operation of the bank in fulfilling
obligations to its clients and ensuring that the restructuring would be the
most effective, rational and cheapest means for the state in solving the
problem,” said Vitas Vasiliauskas, the Chairman of the Board of the Bank of
Lithuania, after a meeting with the temporary administrator of Ukio bankas. 

The Laws of the Republic of Lithuania lay down plenty of means to strengthen
the stability of the financial system. The Republic of Lithuania Law on
Financial Sustainability and the Law on Banks provide possibilities for the
banks to render government guarantees, to transfer the problematic bank’s
assets and obligations to another bank operating in Lithuania. The latter
measure was adopted on 17 November 2011, when the Seimas approved the
appropriate amendments to the Republic of Lithuania Law on Banks. 

In order to find the fastest way of solving this problem, the Bank of Lithuania
intends to immediately begin consultations with other banks regarding their
participation in the restructuring of Ukio bankas. 

Transferring of obligations and assets to another bank will be implemented if
the administrator’s detailed analysis will show that such means of
restructuring are the most economical and rational. 

On 12 February the Board of the Bank of Lithuania authorised Adomas Audickas,
the temporary administrator, to examine and assess the financial standing of
Ukio bankas, the possible means of re-establishing the stability and
reliability of the operation of the bank, and solutions to the bank’s problems.
The Bank of Lithuania must be presented with a conclusion and proposals, along
with interim financial statements from the assessment of the financial
standing. The conclusion and proposals, inter alia, must provide a comparative
feasibility analysis, the likely expenses and benefits of the possible means of
re-establishing the stability and reliability of the operation of the bank and
the effective implementation of solutions for solving the bank's other
problems. 

The Bank of Lithuania has indicated that the administrator’s conclusions on the
re-establishment of the operation of Ukio bankas must be presented within six
days of being appointed. Taking into account the need to find a solution to the
problem of Ukio bankas in the most operative way, the Board of the Bank of
Lithuania today called for the temporary administrator to present his
conclusions and proposals as soon as possible. 

The Bank of Lithuania
Public Relations Division



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