Lithuania c.bank denies bank bailout talk

[Gibbster]

Monday, September 29, 2008 17:12:30

 

VILNIUS, Sept 29 (Reuters) - The head of Lithuania's central bank said on

Monday that none of the country's banks are at risk of bankruptcy, as its stock

market fell sharply on a report that one unnamed institution might need bailing

out.

"I don't see any bank that could face bankruptcy in the near future,"

Central bank Governor Reinoldijus Sarkinas told a parliamentary hearing.

He said he would meet all Lithuania's banks to discuss the market situation

and liquidity issues, adding that, on July 1, the average Tier 1 capital ratio

in the sector was 12.2 percent while all the banks met the minimum requirement

of 8 percent.

If required, the Scandinavian banks that own Lithuania's leading banks would

provide liquidity for their subsidiaries, Sarkinas said. SEB, Swedbank and DnB

Nord dominate the country's banking sector.

Earlier on Monday, the Respublika newspaper quoted Mindaugas Leika, the

central bank official in charge of a banking sector study released in May, as

saying one bank might soon need rescuing.

Leika also played down the report, telling Reuters the central bank had

looked at a "purely hypothetical scenario" based on banks' resistance to

internal and external shocks.

"The main conclusion ... is that the banks can withstand those shocks ...

All (Lithuanian) banks are safe today," he said.

The report sent the Vilnius bourse's OMX index closed down 5 percent to

332.17, its lowest closing level since February 2005.

"It is a panic ... everyone rushed to sell after this article," said Paulius

Jakimavicius at Orion Securities.

In the banking sector the hardest-hit shares were Ukio Bank ,

which closed down 12.37 percent at 1.63 Lithuanian litas, and Snoras Bank, which

at one point fell 15 percent and ended down 5 percent at 1.14 litas. Snoras is

Lithuania's sixth largest bank by assets and Ukio is seventh.

Ukio told Reuters in an email that its position was solid and that the fall

in its share price was sentiment-driven. It also saw no liquidity problems in

the future.

Snoras did not respond to Reuters requests for comment.

Asked whether the central bank would rescue a bank in trouble, Sarkinas

said: "If such a case arose the decision would depend on the bank's importance

to the whole banking system. In any case, parliament would be involved in the

decision."

(Reporting by Nerijus Adomaitis; editing by John Stonestreet)

[email protected]

ms1

 

COPYRIGHT

 

Copyright Thomson Financial News Limited 2008. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content,

including by framing or similar means, is expressly prohibited without the prior

written consent of Thomson Financial News.

[maroonlegions]

"The main conclusion ... is that the banks can withstand those shocks ...

All (Lithuanian) banks are safe today," he said. :), hope that bit is true.

[Praha06]

My father was away for "boys" weekend and one of the guys that was there who is very clued up financially stated that Hearts were in trouble. Definite cash flow difficulties. Just depends whether UBIG can ride the storm basically.

 

Really hope that this major deal currently going through in the US turns this whole drama around.

[coppercrutch]

So there were rumours that one un-named bank was perhaps needing bailing out.

 

Of all the banks in Lithuania today Ukios share price fell the most.

 

The markets think Ukios is the one ..........

 

Doesn't mean that it is of course. However if you look at the markets recently most 'rumours' about banks being in trouble due to liquidity/solvency problems have been spot on...

 

Worrying.

 

 

PS -Good find to the OP.

[maroonlegions]

My father was away for "boys" weekend and one of the guys that was there who is very clued up financially stated that Hearts were in trouble. Definite cash flow difficulties. Just depends whether UBIG can ride the storm basically.

 

Really hope that this major deal currently going through in the US turns this whole drama around.

 

 

 

well as they say on the buying and selling floors in their yellow jackets, "SELL,SELL,SELL", but keep a hold of the youngsters.

[H2]

My father was away for "boys" weekend and one of the guys that was there who is very clued up financially stated that Hearts were in trouble. Definite cash flow difficulties. Just depends whether UBIG can ride the storm basically.

 

Really hope that this major deal currently going through in the US turns this whole drama around.

 

There are a lot of guys who are very clued up financially licking wounds just now. At the moment your guess is probably as good as anyone's who may or may not be clued up. Watch the lottery prizes going up!

[drewbusbomb]

"Ukio told Reuters in an email that its position was solid and that the fall

in its share price was sentiment-driven. It also saw no liquidity problems in

the future."

 

That would be Romanov spin then - mmmm - think I'll sell......

[briacasa]

My father was away for "boys" weekend and one of the guys that was there who is very clued up financially stated that Hearts were in trouble. Definite cash flow difficulties. Just depends whether UBIG can ride the storm basically.

 

Really hope that this major deal currently going through in the US turns this whole drama around.

 

Just been announced that the deal has not been voted through!

[Martin67]

After reading that, I wish there hadn't been any statement.

[portobellojambo1]

Based on a paragraph attached to one of the articles floating about either towards the end of last week or over the weekend a spokesman for the Central Lithuanian Bank indicated that with regards to the credit crunch the former Eastern European/Soviet Bloc countries are roughly around 18 months behind the USA in terms of time of impact. I would actually suspect that of the two groups he is involved with, i.e. Ukio Bankas and UBIG, UBIG is probably the more likely company to become unstable at this time. You only have to look at the operation in Bosnia & Herzegovina to realise that the rising cost of raw materials is putting that plant massively into debt. The property market isn't doing him much favours at the moment either, property was recently sold in Moscow by Ukio for around ?22 million, it was valued at around ?40-?50 million only 3 years ago.

 

Anyone assuming that small banks in relatively small countries, in finance terms, will escape the credit crunch is dreaming, it will hit Ukio at some point, but this news appears to be a lot earlier than was predicted.

[Munch]

Based on a paragraph attached to one of the articles floating about either towards the end of last week or over the weekend a spokesman for the Central Lithuanian Bank indicated that with regards to the credit crunch the former Eastern European/Soviet Bloc countries are roughly around 18 months behind the USA in terms of time of impact. I would actually suspect that of the two groups he is involved with, i.e. Ukio Bankas and UBIG, UBIG is probably the more likely company to become unstable at this time. You only have to look at the operation in Bosnia & Herzegovina to realise that the rising cost of raw materials is putting that plant massively into debt. The property market isn't doing him much favours at the moment either, property was recently sold in Moscow by Ukio for around ?22 million, it was valued at around ?40-?50 million only 3 years ago.

 

Anyone assuming that small banks in relatively small countries, in finance terms, will escape the credit crunch is dreaming, it will hit Ukio at some point, but this news appears to be a lot earlier than was predicted.

 

oh dear, loks like its back in the bunker, where is that tin hat.

[Colonel Kurtz]

Based on a paragraph attached to one of the articles floating about either towards the end of last week or over the weekend a spokesman for the Central Lithuanian Bank indicated that with regards to the credit crunch the former Eastern European/Soviet Bloc countries are roughly around 18 months behind the USA in terms of time of impact. I would actually suspect that of the two groups he is involved with, i.e. Ukio Bankas and UBIG, UBIG is probably the more likely company to become unstable at this time. You only have to look at the operation in Bosnia & Herzegovina to realise that the rising cost of raw materials is putting that plant massively into debt. The property market isn't doing him much favours at the moment either, property was recently sold in Moscow by Ukio for around ?22 million, it was valued at around ?40-?50 million only 3 years ago.

 

Anyone assuming that small banks in relatively small countries, in finance terms, will escape the credit crunch is dreaming, it will hit Ukio at some point, but this news appears to be a lot earlier than was predicted.

 

St Andrews square was also a nightmare

The" Besliga" of the Edinburgh property deals

Look for more symptoms in the next few weeks

[jkato]

Based on a paragraph attached to one of the articles floating about either towards the end of last week or over the weekend a spokesman for the Central Lithuanian Bank indicated that with regards to the credit crunch the former Eastern European/Soviet Bloc countries are roughly around 18 months behind the USA in terms of time of impact. I would actually suspect that of the two groups he is involved with, i.e. Ukio Bankas and UBIG, UBIG is probably the more likely company to become unstable at this time. You only have to look at the operation in Bosnia & Herzegovina to realise that the rising cost of raw materials is putting that plant massively into debt. The property market isn't doing him much favours at the moment either, property was recently sold in Moscow by Ukio for around ?22 million, it was valued at around ?40-?50 million only 3 years ago.

 

Anyone assuming that small banks in relatively small countries, in finance terms, will escape the credit crunch is dreaming, it will hit Ukio at some point, but this news appears to be a lot earlier than was predicted.

 

Don't UBIG also have a bank in the Ukraine in their portfolio?

 

These are worrying times and last weeks "technical problem" may have been a smokescreen for something more serious.

 

HBOS not granting an increase, in what is a paltry overdraft rate for a club with an ?18m turnover is a concern from where I'm sitting.

 

Time will tell.

[Praha06]

Don't UBIG also have a bank in the Ukraine in their portfolio?

 

These are worrying times and last weeks "technical problem" may have been a smokescreen for something more serious.

 

HBOS not granting an increase, in what is a paltry overdraft rate for a club with an ?18m turnover is a concern from where I'm sitting.

Time will tell.

 

Yes, exactly what I was saying to my Dad earlier on. Surely if it was just a "technical glitch" and the money was definately on its way then why didnt HBOS grant us an emergency extension, did they have due cause to deny us such a facility. What could that cause have been?

[Martin67]

Yes, exactly what I was saying to my Dad earlier on. Surely if it was just a "technical glitch" and the money was definately on its way then why didnt HBOS grant us an emergency extension, did they have due cause to deny us such a facility. What could that cause have been?

 

Whatever the casue, the lack of clarification from the club after the story hit the papers was very worrying. Hopefully we won't see a recurrence.

[portobellojambo1]

Don't UBIG also have a bank in the Ukraine in their portfolio?

 

These are worrying times and last weeks "technical problem" may have been a smokescreen for something more serious.

 

HBOS not granting an increase, in what is a paltry overdraft rate for a club with an ?18m turnover is a concern from where I'm sitting.

 

Time will tell.

 

Don't know jkato.

 

Going by their own website their portfolio consists of Finance (banking and investment group based in Bosnia), Real Estate (which consists of 4 as yet unfinished projects, including Tynecastle), Industry (aluminium smelting and mining, again based in Bosnia) and other activities (which are indicated to be Engineering and Tourism in Lithuania).

 

There may be more but I am not sure where the information could be found.

[jlo2]

Yes, exactly what I was saying to my Dad earlier on. Surely if it was just a "technical glitch" and the money was definately on its way then why didnt HBOS grant us an emergency extension, did they have due cause to deny us such a facility. What could that cause have been?

To be fair HBOS had enough problems of their own to start increasing overdraft limits for a customer for whom the Auditors posted concerns about its viability.

[jkato]

Don't know jkato.

 

Going by their own website their portfolio consists of Finance (banking and investment group based in Bosnia), Real Estate (which consists of 4 as yet unfinished projects, including Tynecastle), Industry (aluminium smelting and mining, again based in Bosnia) and other activities (which are indicated to be Engineering and Tourism in Lithuania).

 

There may be more but I am not sure where the information could be found.

 

My mistake. It was Bosnia and not Ukraine.

 

I daren't start a new post on the subject, but what would happen to the club if the bank folded tomorrow?

 

Where's the wages going to come from?

[Coco]

My mistake. It was Bosnia and not Ukraine.

 

I daren't start a new post on the subject, but what would happen to the club if the bank folded tomorrow?

 

Where's the wages going to come from?

 

Hearts also seem to be able to tap into credit facilities from UBIG.

 

However, if Ukio Bankas were going under it would perhaps be expected that UBIG would also be struggling on their own financing.

 

The accounts which were found on the UBIG website last week showed that there is a lot of short term financing to be done by UBIG. No notes provided to show who gives UBIG that short term funding, but it should be expected that the cost of that short term funding has gone up - a lot - in the last few months (and days). So they might not be able to extend credit to Hearts.

 

It is surely unlikely that any other bank would take on the Hearts debt.

[Auld Smiddy]

UBIG's investment in the Birac alumina plant in Republika Srpska (the Serbian enclave in Bosnia) has been a disaster.

It also formed the Balkan Investment Bank, but this is also struggling badly.

Some of the bigger names in its portfolio have lost more than half their value this year.

Ukio Bankas has lost 54 per cent of its value since January, but it would have been a lot worse but for some frantic buying of its shares at the end of each trading session to shore up its value.

It's been the most heavily-traded share in Vilnius over the past week.

Just a wild guess here, but that may be where the group's hard cash is going at present.

[Coco]

UBIG's investment in the Birac alumina plant in Republika Srpska (the Serbian enclave in Bosnia) has been a disaster.

It also formed the Balkan Investment Bank, but this is also struggling badly.

Some of the bigger names in its portfolio have lost more than half their value this year.

Ukio Bankas has lost 54 per cent of its value since January, but it would have been a lot worse but for some frantic buying of its shares at the end of each trading session to shore up its value.

It's been the most heavily-traded share in Vilnius over the past week.

Just a wild guess here, but that may be where the group's hard cash is going at present.

 

Yes the large deferred tax assets in the UBIG accounts suggested that someone in the group has been making big losses - even bigger than Hearts losses!

[The Mighty Thor]

given that the US congress has just voted against the $700 billion rescue package of the American economy i can foresee further runs on banks and investment groups globally and as many of the major countries suspend trading in banking and group stocks the smaller countries become prime targets for an easy roll over.

 

This whole thing could run a bit yet.

[PontiusPilate]

I'll hold my hands up and admit I know nothing about finance, so could someone explain where all the money in the world has gone or did it never exist in the first place?

[jkato]

This might work in our favour.

 

What happens if we owe the debt to Ukio and they go belly-up? Can we write that off? Or do we owe it to UBIG after the debt for equity thing a few months ago?

 

That aside and given the current financial conditions, it's safe to assume that the stadium development is a mere pipe dream.

[coppercrutch]

I'll hold my hands up and admit I know nothing about finance, so could someone explain where all the money in the world has gone or did it never exist in the first place?

 

I think you know more than you think. It is that simple.

[coppercrutch]

This might work in our favour.

 

What happens if we owe the debt to Ukio and they go belly-up? Can we write that off? Or do we owe it to UBIG after the debt for equity thing a few months ago?

 

That aside and given the current financial conditions, it's safe to assume that the stadium development is a mere pipe dream.

 

Ukio and HMFC are parts of UBIG. If UBIG goes teets up we all go teets up.

 

If someone was wanting to come in and but us for a 'knock down' price a UBIG collapse could work in our favour. Can't imagine who though. So we could be *****ed.

 

Well we can only wait and see what happens.

[Guest gorgie kev]

I believe that we are about to see HMFC about to be put on a life support machine.The only question left is how long till it gets turned off.

[Charlie-Brown]

Ukio and HMFC are parts of UBIG. If UBIG goes teets up we all go teets up.

 

If someone was wanting to come in and but us for a 'knock down' price a UBIG collapse could work in our favour. Can't imagine who though. So we could be *****ed.

 

Well we can only wait and see what happens.

 

Tynecastle has securities on it to cover the clubs debts so the football club being able to continue to own the stadium would be in jeopardy - severe doubt.

[KPAL]

"St Andrews square was also a nightmare

The" Besliga" of the Edinburgh property deals

Look for more symptoms in the next few weeks"

 

Seems to be in ownership of a Dutch Company ukios/ubig are the creditors.

[topcat]

From ft.com

To put the story into a slightly wider perspective

 

By David Oakley, Capital Markets Correspondent

 

Published: September 26 2008 11:36 | Last updated: September 26 2008 11:36

 

Debt-laden eastern European economies are facing downgrades in the coming months as deteriorating credit conditions hit their fragile banking sectors.

 

The overheating economies of Latvia, Lithuania, Estonia, Kazakhstan, Montenegro, Serbia, Romania and Hungary are under the greatest threat, according to ratings agency Standard & Poor?s.

 

Downgrades to credit ratings have big implications for borrowing in the capital markets as investors use them to make decisions over what bonds and loans to buy.

 

These economies have high current account deficits and a large backlog of bonds and loans that they may struggle to refinance this year because of the severe restraints over raising cash in the capital markets.

 

A total of $940bn of foreign and local currency debt, which includes bonds, loans and deposits, needs to be refinanced in eastern Europe this year, according to S&P.

 

The Baltic republics are most exposed to the seizing up of the credit markets because of the large ratio of debt to gross domestic product that needs to be refinanced.

 

Latvia has $26.2bn, equivalent to 79 per cent of GDP, in debt maturing this year, Estonia $18.4bn, or 77 per cent of GDP, and Lithuania $25bn, or 53 per cent of GDP.

 

Kazakhstan, which borrowed heavily in the capital markets in the pre-credit crunch era, is also highly exposed. A large chunk of its $35.6bn in debt maturing this year has been financed by foreign investors, who no longer want to buy riskier emerging market debt.

 

All these countries have been put on negative outlook, the first step towards a downgrade.

 

S&P said: ?Risks from overheating and excessive leverage across eastern Europe, which could affect growth and the potential cost to governments of re-capitalising overburdened banking systems, largely explain the increase in negative ratings actions over the past 12 months.?

 

Separately, rival ratings agency Moody?s put the Russian banking system on negative credit outlook, reflecting concerns over the high leverage of many financial institutions and the deterioration in the equity markets since the invasion of Georgia in August.

 

Analysts expect some Russian banks will default in the coming months as they run out of cash.

[Praha06]

How long till this thread is referred to over at twomillersandtheyre****ed.net?

[flecktimus]

How long till this thread is referred to over at twomillersandtheyre****ed.net?

 

The OP articile has already been cut and pasted

[Thunderstruck]

UBIG is....

a management company of diversified holdings which operates in the property development, banking, aluminium, mining, logistics, textiles, sports, financial intermediary and other sectors.

 

The key word in there is "diversification" and, IIRC, media interests in the form of TV can be added to the above.

 

Incidentally, where in Edinburgh is "St. Andrews Square"?

[Geoff Kilpatrick]

At the minute, we all have more important things to worry about than UBIG after the US Congress vote. We could be headed for Great Depression II.

[Mr Quagmire]

Yes, exactly what I was saying to my Dad earlier on. Surely if it was just a "technical glitch" and the money was definately on its way then why didnt HBOS grant us an emergency extension, did they have due cause to deny us such a facility. What could that cause have been?

 

HBOS were on the verge of going breasts up mate, they could not offer anything to anyone.

[Tasavallan]

The current crisis in the banking market affects all.

 

Ukio Bankas' share price has dropped by over 50% in the last 6 months from 3.5 LTL to 1.63 LTL. As VR + family + UBIG are the main shareholders this share drop obviously reduces their worth.

 

[Coco]

UBIG is....

 

 

The key word in there is "diversification" and, IIRC, media interests in the form of TV can be added to the above.

 

Incidentally, where in Edinburgh is "St. Andrews Square"?

 

It seems that all of those sorts of businesses have been reliant (globally) on cheap money. Resources and banking have had a long boom. It doesn't seem that any of the real estate projects have got anywhere significant - and real estate is also reliant on cheap money! The bank building purchase in Edinburgh at the top of the market does not give much comfort with the people running UBIG.

 

In addition the financing side of UBIG could offer some concern. The accounts which were found last week and posted on here showed how much reliance they have on short term 'financial debts'. Who they owe the money to or just when it is due was not released - but it cannot be easy to rollover short term debt in this environment.

[Geoff Kilpatrick]

Ukio Bankas shares down another 10.5% this morning.

 

Mind you, compared to the British banks, that's nothing!

[Deevers]

Ukio Bankas shares down another 10.5% this morning.

 

Mind you, compared to the British banks, that's nothing!

 

All banks, all over the world are going to feel the pinch until things get sorted out in America.

[Jammy T]

There is not any certainty about anything here

 

But anyone that is not gravely concerned about the potential impact of this on HMFC is blind to the extreme. Although as GK points out above we all personally probably have a lot more to worry about as this unfolds (interestingly it is only around a couple of weeks since I was arguing and debating that we were in 1920s territory with quite a lot of opposition - I guess it brings into question of what the true difference is between being negative and a realist...)

 

The first phase of the problem is the banking system

 

One of the next phases of the problem are businesses that have short term financing requirements

 

One of the next phases of the problem will be companies heavily invested in commercial property. Standardly they will have financing which requires their property portfolio to be at least 75% of the value of their financing. If the value drops below this they have to find money to pay their lender to replace the deficit.

 

I actually couldnt think of a worse portfolio company grouping of companies at present than a bank, a commercial property company, an industrial metal company and a cash burning company such as a football club.

 

People can accuse me of whatever they want but straightforward economics of the day are screaming that all of Vlad's sorry empire is under threat.

 

What happens will depend on a number of things, in particular

 

1. Vlad's desire to keep all or part of this empire alive and in his control

2. The willingness of third parties to takeover parts of the group

 

UBIG must be the jewel in the crown of Vlad's empire, so the key issue is whether or not Vlad is from the school of thought that it should be kept alive at all costs, partially by selling off some of the subsidiary companies, or whether Vlad is from the school that he is relatively protected from corporate bankruptcies and will just walk away from everything and start again

 

My hope is that his age dictates that he will try and save as much of his empire as possible

 

IF UKIO were performing as well as we have been told there is a chance it will be propped up by the Lith government or bought over.

 

Re Hearts - it's perilous. We are either too much bother to save, or the key to getting some liquidity into UBIGs veins. From the sources I have read on here I have always believed Vlad wasnt the only show in town recently. The largely reliable PTBCAL has suggested there is interest in the wings...

 

Worrying, but fascinating once in a lifetime events....

[Hagar the Horrible]

as of September 2007 the share of Ukio Bankas

 

were at 486Ltl

today at 163

 

-323 Ltl in a year that is a -198% drop

 

however as Vlad and his family own about 80% of the company thts still better than most, so no doubt he will be able to right it off?

 

And put things in perspective we owe Ukio bankas money, it would be far worse being the other way around, so if they go for a burton then so what they could wipe our debt with it???

[topcat]

as of September 2007 the share of Ukio Bankas

 

were at 486Ltl

today at 163

 

-323 Ltl in a year that is a -198% drop

 

however as Vlad and his family own about 80% of the company thts still better than most, so no doubt he will be able to right it off?

 

And put things in perspective we owe Ukio bankas money, it would be far worse being the other way around, so if they go for a burton then so what they could wipe our debt with it???

 

It's a pedantinc point of arithmetic but

 

If the share price fell almost 200% it would be negative

 

It's actually about 66% fall (although it'll be around 60% in Sterling thanks to the rise in the value of the Lita)

[Geoff Kilpatrick]

Latest: Ukio now down 4.2% on the day - was down 10.5%. Markets seem to have a little bounce in them yet.

[Hagar the Horrible]

It's a pedantinc point of arithmetic but

 

If the share price fell almost 200% it would be negative

 

It's actually about 66% fall (although it'll be around 60% in Sterling thanks to the rise in the value of the Lita)

 

Its their figures from their website????????

[topcat]

Its their figures from their website????????

 

Well if they think that 198% of 486 = 323

 

Then they're in more trouble than anybody thought

[peckhamjambo]

Monday, September 29, 2008 17:12:30

 

VILNIUS, Sept 29 (Reuters) - The head of Lithuania's central bank said on

Monday that none of the country's banks are at risk of bankruptcy, as its stock

market fell sharply on a report that one unnamed institution might need bailing

out.

"I don't see any bank that could face bankruptcy in the near future,"

Central bank Governor Reinoldijus Sarkinas told a parliamentary hearing.

He said he would meet all Lithuania's banks to discuss the market situation

and liquidity issues, adding that, on July 1, the average Tier 1 capital ratio

in the sector was 12.2 percent while all the banks met the minimum requirement

of 8 percent.

If required, the Scandinavian banks that own Lithuania's leading banks would

provide liquidity for their subsidiaries, Sarkinas said. SEB, Swedbank and DnB

Nord dominate the country's banking sector.

Earlier on Monday, the Respublika newspaper quoted Mindaugas Leika, the

central bank official in charge of a banking sector study released in May, as

saying one bank might soon need rescuing.

Leika also played down the report, telling Reuters the central bank had

looked at a "purely hypothetical scenario" based on banks' resistance to

internal and external shocks.

"The main conclusion ... is that the banks can withstand those shocks ...

All (Lithuanian) banks are safe today," he said.

The report sent the Vilnius bourse's OMX index closed down 5 percent to

332.17, its lowest closing level since February 2005.

"It is a panic ... everyone rushed to sell after this article," said Paulius

Jakimavicius at Orion Securities.

In the banking sector the hardest-hit shares were Ukio Bank ,

which closed down 12.37 percent at 1.63 Lithuanian litas, and Snoras Bank, which

at one point fell 15 percent and ended down 5 percent at 1.14 litas. Snoras is

Lithuania's sixth largest bank by assets and Ukio is seventh.

Ukio told Reuters in an email that its position was solid and that the fall

in its share price was sentiment-driven. It also saw no liquidity problems in

the future.

Snoras did not respond to Reuters requests for comment.

Asked whether the central bank would rescue a bank in trouble, Sarkinas

said: "If such a case arose the decision would depend on the bank's importance

to the whole banking system. In any case, parliament would be involved in the

decision."

(Reporting by Nerijus Adomaitis; editing by John Stonestreet)

[email protected]

ms1

 

COPYRIGHT

 

Copyright Thomson Financial News Limited 2008. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content,

including by framing or similar means, is expressly prohibited without the prior

written consent of Thomson Financial News.

 

You've been quiet for a while Gibbster?!