Employee may cost 66 million kroons

  • 2000-08-10
TALLINN (BNS) - A fraud committed by a senior official of Hansapank's trade finance department may cost the bank 66 million kroons ($ 3.83 million).

The employee was fired and the financial loss to the bank is being determined, Hansapank reported on Aug. 8. The bank will shortly file an application with the police concerning the violation.

Mait Koldits, head of the trade finance department, in complicity with a client, withheld since the summer of 1998 knowledge of an unguaranteed loan issued to the client and gave false information to the bank's credit committee, said Kristi Liiva, Hansapank's spokeswoman.

In August the bank is going to form provisions in the sum of 66 million kroons to cover the expected loss.

Regardless of the extraordinary provisions, Hansapank remains within the range of analysts' profit forecast, officials at the bank said.