Finance

Amsterdam Trade Bank, part of Russia’s Alfa Bank, declared bankrupt

Alfa Financial institution signal is seen on a constructing in Minsk, Belarus September 7, 2017. REUTERS/Vasily Fedosenko

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AMSTERDAM, April 22 (Reuters) – Amsterdam Commerce Financial institution (ATB), a subsidiary of Russia’s Alfa Financial institution, has been declared bankrupt, the Dutch central financial institution (DNB) mentioned on Friday, citing an Amsterdam District Court docket Ruling.

A press release on the DNB web site mentioned ATB depositors could be lined as much as 100,000 euros ($108,000) every underneath the Netherlands’ deposit assure system. The financial institution had round 23,000 clients, of whom most are Dutch however 6,000 are German, the DNB mentioned.

In line with filings on the Dutch Chamber of Commerce, the financial institution’s final useful proprietor is Mikhail Fridman, the Russian-Israeli billionaire who’s contesting Western sanctions imposed on him following Russia’s invasion of Ukraine. His stake in ATB was mentioned to be greater than 25% however not more than 50%.

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Alfa Financial institution is topic to U.S. sanctions, however has not been focused by the European Union.

ATB itself had not been sanctioned, however Dutch monetary newspaper Het Financieele Dagblad (FD) reported that depositors started to panic on Thursday.

In a press release on its web site, ATB confirmed it had requested and been granted chapter. The financial institution mentioned that U.S. and British sanctions had “brought on operational difficulties, as nearly all of ATB’s counterparties, together with corresponding banks … discover it troublesome to proceed supporting ATB.”

The FD newspaper had beforehand reported that ATB’s house owners had been searching for to promote the financial institution and depositors found that different European banks had been unwilling to just accept transfers out of ATB for worry of falling foul of sanctions.

The small financial institution had beforehand been recognized for commerce financing however had sought in recent times to turn out to be a lender to small and medium measurement corporations.

In line with its 2020 annual report, the latest on file on the Chamber of Commerce, ATB had belongings of round 1.2 billion euros and fairness of 174 million euros. It made a revenue of 27 million euros that 12 months.

($1 = 0.9270 euros)

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Reporting by Toby Sterling Modifying by Louise Heavens and Mark Potter

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