The moratorium imposed by the ECB — which supervises ABLV from Frankfurt, Germany — comes at a difficult time for Latvia’s banking sector as the head of the country’s central bank was detained by Riga’s anti-corruption agency over the weekend.
The home and offices of Ilmars Rimsevics, who also sits on the ECB’s rate-setting committee, were raided by officers from Latvia’s Corruption Prevention Bureau on Saturday. However, no details about the investigation or the nature of the raids have been made public. Latvian media has suggested the questioning of Rimsevics was not connected to ABLV.
The detention of Rimsevics prompted Latvia’s Prime Minister Maris Kucinskis to call an emergency cabinet meeting Monday. Shortly afterward, he told Latvian television that the head of the country’s central bank should resign.