VDD informed Latvian officials last year about 'Luminor' buyer's activities in Russia

Latvia's State Security Service (VDD) alerted top government officials last year to potential risks stemming from the continued operations of Hungary's OTP Bank in Russia, even after the invasion of Ukraine. The VDD confirmed it had gathered and assessed information regarding OTP Bank after the Hungarian lender expressed interest in acquiring Luminor Bank, which has a presence in the Baltic states.

In March of the previous year, the VDD formally notified state officials about the identified risks. Due to the classified nature of this communication, the service has refrained from providing extensive details about its content. However, it was confirmed that a similar letter, outlining these concerns, was also sent to the Bank of Latvia in April of the same year.

“

The person is found in the water, has been brought ashore, and life-saving first aid is being administered to the patient.

Luminor Bank is registered in Estonia, with branches in Latvia and Lithuania. The ultimate decision on whether to approve OTP Bank's acquisition of Luminor rests with the European Central Bank (ECB) and the Bank of Estonia. These bodies will consult with the financial regulators of other countries where Luminor Bank operates.

Latvia's central bank, Latvijas Banka, stated it has received information about OTP Bank's acquisition intentions and is in communication with the Estonian financial market supervisor. Both entities, along with the ECB's Supervisory Board, will thoroughly evaluate the proposed transaction. Latvijas Banka emphasized that the deal is currently only an intention and will undergo rigorous regulatory scrutiny. The process will involve a comprehensive analysis of Luminor Bank, including the potential impact of the new majority shareholder on the bank and its branches in Latvia and Lithuania.

“

CPR was concluded on site shortly after 5 p.m. today, as life unfortunately could not be saved. The deceased is a man in his 70s.