OREANDA-NEWS. November 24, 2011. Last week in Lithuania the activity of the main shareholder of AS Latvijas Krajbanka - AB Bankas „Snoras” was suspended. SNORAS bank has been nationalized and the bank continues its activity in a new status as Lithuanian state-owned bank, reported the press-centre of Latvijas Krajbanka.

Regardless of what the actual circumstances of the case are – which is likely time and event study will show - the financial world experienced the unpleasant tremor, which has also affected Your – our loyal clients` comfort. We hope for your understanding and loyalty to the history and experience of Latvijas Krajbanka, which enabled the Bank to overcome successfully all crisis and tremors in its history. For our part we are ready to do everything in our powers and possibilities to ensure that the events in Lithuania would affect Latvijas Krajbanka as little as possible. 

No matter how the event will develop in Lithuania, calm and comfort of our clients, as well as confidence in reliable collaboration possibilities with Latvijas Krajbanka in future at the moment is the most topical goal for the management of the Bank. 

Unfortunately, in order to ensure calm and comfort of loyal clients of the Bank, pursuant to the Council decision of the Financial and Capital Market Commission (hereinafter referred to as – the Commission), which is the institution supervising banks of the Republic of Latvia, dated 17 November 2011 the Bank is forced to cause inconvenience to those clients, who make rapid decision regarding transferring their funds to other bank when they feel any negative information about the bank, thus causing circumstances, which will not result in stability of the bank in the future.

Pursuant to the Commission Council decision, starting with 18 November 2011 the restrictions are set on the disbursement of money whether cash or non-cash both outside and within the bank in the amount of 100 000 EUR per one client. The said restriction refers only to those funds on the current or deposit account of clients as of the end of the day 17 November 2011. THE BANK DOES NOT RESTRICT THE CLIENTS` ACTIVITIES WITH FUNDS, WHICH THEY DEPOSIT OR RECEIVE ON THEIR ACCOUNTS AFTER 17 NOVEMBER 2011. 
   
The decision foresees also a range of exceptions, to which the present restrictions are not applicable:

a. Client payments into state budget;

b. Client payments to the state and local government authorities;

c. Client payments to commercial companies operating in the area of commodity production and provision of services to the sectors governed by the state and local government authorities;

d. Client payment to AS Latvijas Krajbanka and its subsidiaries.

To ensure implementation of the decision, funds in excess of the said amount are blocked. This means – that by making a transfer it will not be executed, but declined. Therefore, we apologize for any inconvenience caused by the current activity mode and we ask you to follow up your monthly payment amount from the “old” (before 18 November 2011) funds in the Bank.

To a large extent it depends only on you, our loyal clients, how long the said restriction will remain in force. We hope that this limitation will not be the reason for you to lose confidence in our bank in a situation resulting out of coincidence of circumstances, which are beyond of our control.