After studying a request from Swedbank, the board issued a green light for the Lithuanian bank to repay a 60 million euros loan extended in 2008 and a 70 million euros loan provided in 2006. Initially the bank had to repay those loans in September 2017 and February 2016, respectively.
In granting the permission, the board took into consideration the fact that, with the loans paid back, the capital adequacy of both Swedbank and its group would remain well above the regulatory requirement established by the central bank, the Bank of Lithuania said in a press release.
Swedbank’s capital adequacy was 19.1 percent at the end of March, and the respective rate of the entire group was 18.4 percent.
Swedbank would reduce borrowing costs and the existing significant liquidity surplus after paying back those subordinated loans.
2012-05-18 11:43
Lithuania’s Swedbank gets nod for early repayment of 130-million-euro loans
The board of the Bank of Lithuania has given the go-ahead for Swedbank to repay before maturity two subordinated loans obtained from Estonia’s Swedbank.
Swedbank / Tomo Lukšio/BFL nuotr.
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