Šiaulių bankas strengthens its capital base

2013-02-27

The Supervision Service of the Bank of Lithuania allowed including the subordinate loan granted to Šiaulių bankas by the European Bank for Reconstruction and Development (EBRD) into the Tier II capital of Šiaulių bankas. 

The EBRD, biggest shareholder of Šiaulių bankas , has granted the subordinate loan of EUR 20 million (about LTL 69 million) to Šiaulių bankas for the period of 10 years to facilitate the takeover of the assets and liabilities of the troubled Ūkio bankas. The received loan will strengthen the capital base of Šiaulių bankas.

“The subordinated loan granted to Šiaulių bankas by the European Bank for Reconstruction and Development will accelerate the process of takeover of the banking activities of Ūkio bankas and secure better access to finance for Lithuanian businesses”, - says Audrius Žiugžda, Chief Executive Officer of Šiaulių bankas”.

As of December 31, 2012 the capital adequacy ratio of Šiaulių bankas comprised 12.8 per cent (the prudential requirement set to the capital adequacy by the Bank of Lithuania should not be below 8 per cent.).