The total amount of claims of the State Joint-stock Company “Latvijas Hipotēku un zemes banka” (Mortgage and Land Bank of Latvia) from the US investment bank Lehman Brothers, currently initiated bankruptcy procedure, is 1.899 mln LVL. The claims comprise debt securities, purchased by the bank in order to maintain liquid assets. The investment will not materially affect the commercial activity of the bank or its financial results. At the present moment, the market value of the investments is 32% or 0.607 mln LVL. According to the expert opinions on the mass media, it is estimated that up to 60% would be recoverable in the future, or 1.139 mln LVL of the total amount of investments. The State Joint-stock Company “Latvijas Hipotēku un zemes banka” is a 100% state-owned bank. The profit of the bank for six months of 2008 was 2.751 mln LVL, and equity capital 63.228 mln LVL. Rating assigned by the international rating agency Moody's is A2.
Public announcement regarding the mass media disseminated information on initiation of bankruptcy procedure of Lehman Brothers
| Source: Latvijas Hipoteku un zemes banka