Bank of Lithuania appoints administrator to credit union

Having identified that the Vilniaus Kreditas credit union did not maintain sufficient capital or a limit for the largest sum of loans to a single debtor, the board of the Bank of Lithuania has selected a temporary representative to oversee this union’s operations until September 30, 2016.

The union will need this representative’s permission to make significant decisions, The temporary representative will be a company named Insolvensa.

This decision was made by the bank because the Vilniaus Kreditas credit union had not followed the bank’s orders to ensure sufficient capital and to limit its loans to individual debtors.

The bank also wrote that this was not the first time that the credit union had used unsafe tactics, and that it was not the first time that similar measures had been applied to the union.

LRT