The court appointed barrister Daina Pukite as liquidator of the bank and ruled that Bank Council Chairman Jury Shatalov's and Acting Deputy Chairman Alexander Fartbukh's participation in the liquidation is compulsory.
The Bank of Latvia's Credit Institutions Department official Valda Bidina told the court the central bank conducted an inspection of Viktorija between Sept. 30 and Oct. 6 and determined that the bank should create significant additional reserves and write down as losses a part of its assets. As a result of this, the bank's equity capital slid to 99,064 lats ($170,800).
The bank has been supervised since Oct. 16, and it was only allowed to perform settlements on the orders of clients.
Bidina said during the supervision the bank was unable to increase its equity capital to the 2 million lat capital adequacy requirement set by law, and the central bank resolved to revoke Viktorija's banking licence Nov. 6.
Daina Zake from Viktorija agreed with the court that the bank should be liquidated noting most of its assets were invested in Russia and became illiquid after the crisis there set in.
Viktorija was the smallest Latvian bank late in September in terms of assets which totaled 3.5 million lats. Its capital and reserves were 2.02 million lats, according to figures of the Latvian Commercial Banking Association.