Latvian bank collapse casts doubt on moratorium plan
Lobbyists say handling of ABLV shows flaws in EC’s pre-resolution stay concept
The pre-insolvency moratorium applied to Latvian bank ABLV on February 19 may have hastened its failure and reduced the likelihood of recovery, according to lobbyists and regulation experts, in a test case for pre-resolution powers currently under debate at the European Union level.
“Pre-insolvency moratoria have long existed at the national level and I think the European Commission’s intention was to harmonise these tools across the EU, but we argue this isn’t helpful because they don’t help
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