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AS PNB Banka's new shareholders and Management Board announcement

AS PNB Bankas new shareholders and Management Board believe that the Bank is currently solvent and that the Banks liquidity is currently good. AS PNB Bankas new shareholders had also submitted a plan to inject further capital of 146 million.

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Within hours of the ECB's and the SRB's decisions on Thursday, the Bank reached out to the ECB and the SRB requesting the full text of their decisions so that their basis can be analyzed. There has been no substantive response by the ECB. The SRB merely stated that it needs to determine which parts of its decision can be disclosed to the bank.

The SRB was asked by the Bank to clarify on what basis it has stated on Thursday evening that the bank will be liquidated under national law. AS PNB Bankas new shareholders and Management Board understand that the SRB has no decision-making power as regards a liquidation under national law.

AS PNB Bankas new shareholders and Management Board also note the FCMC's statement on Thursday that its measures are "unexpected". The FCMC will have to explain the basis on which it made a determination of the unavailability of deposits.

AS PNB Bankas new shareholders and Management Board will vigorously contest any petition for the opening of insolvency proceedings in front of the Latvian courts and in this context will demand that the Latvian courts obtain guidance from the European Court of Justice as to compliance with applicable European law.

AS PNB Bankas new shareholders and Management Board reserve all rights and remedies on a national and European level as well as their rights pursuant to investment treaties. This includes the investment treaty between the United States of America and Latvia. AS PNB Bankas new shareholders have therefore written to the US Embassy in Riga.

AS PNB Bankas new shareholders and Management Board also recall the responsibility of Latvia and the European authorities as regards the credibility and reliability of banking regulation in Latvia. Outside observers (such as the US government) but also the competent Latvian authorities themselves have acknowledged the serious issues in this regard. The competent authorities and the courts should be allowed to discharge fully their responsibility in this regard so as to restore confidence in the system.

The ECBs assessment of the Bank's financial position needs to be analyzed against the background of the auditors and the FCMCs prior assessments. AS PNB Bankas new shareholders and Management Board are concerned that the bank is treated differently than all other comparable banks in Latvia and elsewhere in Europe.

AS PNB Bankas new shareholders and Management Board are convinced that the Bank's continued operations can be ensured and that this will be for the benefit of more than 100,000 Bank's depositors, 500 employees and their families as well as Latvia and its tax revenues.

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AS PNB Banka's new shareholders and Management Board announcement c3_d15b