Luxembourg's financial regulator, the CSSF, has announced that today it has filed an application with the Luxembourg District Court dealing with commercial matters, for the suspension of payments by the Luxembourg société anonyme ABLV Bank Luxembourg S.A., established and having its registered office at 26a Boulevard Royal, L-2449 Luxembourg, registered with the Registre de Commerce et des Sociétés de Luxembourg under number B162048.
In accordance with Article 122(6) of the Law of 18 December 2015 on the failure of credit institutions and certain investment firms, the service of the application on a credit institution shall automatically bring about, in favour of the institution and pending a final decision on the application, a suspension of all payments by that institution and a prohibition, under penalty of nullification, of all acts other than precautionary measures unless authorised by the CSSF or by any contrary legal provision.
In this context, the CSSF has acted in accordance with a letter of the European Central Bank dated 18 February 2018 inviting it to consider a moratorium and safeguards similar to those imposed by the FCMC, the competent authority of Latvia, on instruction by the European Central Bank, regarding the Latvian company ABLV Bank AS, which is the parent company of the Luxembourg entity. The companies ABLV Bank AS and ABLV Bank Luxembourg S.A. are under the direct supervision of the European Central Bank.
