For the most part, the Lithuanian banking sector has not felt ill effects from the Russian economic and financial crisis. But according to a statement made by Litimpeks' executive board, the bank began facing liquidity problems when the accounts of some of its largest clients began fading at the beginning of this year due to the crisis.
Litimpeks has around 35 million litas ($8.75 million) of unsettled bills, according to an ELTA news agency report.
To solve its liquidity problems, the executive board of Litimpeks recently pitched the idea of making Litimpeks an affiliate of the Taupomasis Bankas, calling it "the most realistic option."
According to this scenario, the largest shareholders in the bank would sell a two-thirds stake to Taupomasis. Taupomasis could then oversee the bank's executive and organizational work.
Taupomasis Bankas would have to put aside funds to maintain Litimpeks' liquidity, which would be guaranteed by the latter's "profit-making activities and other assets."
"Already, there is not only intensive negotiations but concrete work, about which the state government was informed," read the statement by Litimpeks. "A working group of specialists from both banks has been formed."
Kestutis Vanagas, central bank spokesman, told TBT that the Bank of Lithuania had sent a commission to Litimpeks to discuss the bank's liquidity problems. But the central bank has yet to make any sort of decision on the idea of connecting the two banks and is currently mulling over this option.