“The situation is obviously not perfect. The bank is in fact insolvent,” he told the reporters when asked about the situation at the bank, which was closed last Tuesday.
Vasiliauskas briefed the members of the Cabinet about the situation at Ūkio Bankas on Monday.
Asked whether the authorities planned to initiate bankruptcy proceedings against the failed bank, he said: “The alternatives always include that option.”
Vasiliauskas refused to make any detailed comments about the financial situation of the bank. The Bank of Lithuania planned to take a decision on Ūkio Bankas on Monday night, he said.
“We will be able to speak about the figures after today’s meeting of the board, which will show the differences established during our check-up, the differences established by the auditors of the temporary administrator. This will be the basis for our decisions,” the central banker said.
The meeting of the central bank’s board, which would discuss the finding and proposals on the restoration of operating stability and reliability of Ūkio Bankas that Adomas Audickas, the temporary administrator of the failed bank, submitted on weekend, should begin at 5 PM on Monday.
Audickas submitted his report to the Bank of Lithuania on Saturday yet the board asked the administrator to provide further information on the valuation of the bank’s assets. The findings and the proposals have not been disclosed to the public so far.
Vasiliauskas said last week that there were at least three reorganization options available for Ūkio Bankas, including bankruptcy, a takeover of the bank's goods assets by another lender, or setting up of an interim bank for the good assets.
