Baltic States – CIS, Banks, Financial Services, Latvia, Legislation

Verbickis points out that Manas Bank is continuing its international legal proceedings for illegal confiscation of property and losses sustained because of this. He points out Kyrgyzstan continues to breach a bilateral agreement signed between Latvia and Kyrgyzstan in 2008 on the protection of investments, reports LETA.

Verbickis maintains that the situation surrounding Manas Bank assets in Kyrgyzstan is solely a financial dispute, ''which is being used as an instrument in the Kyrgyz pre-election campaign''.

Furthermore, the Kyrgyz financial investigation authority previously said it had established no violations in the operations of Manas bank and that there are no grounds for any administrative sanctions.

''Fearing a negative decision from the International Court of Arbitration, the Kyrgyz authorities are using judicial double-standards, or illegal methods used to exert influence during the Soviet-era – ''no people – no problem''. The Kyrgyz authorities have once again carried out illegal actions in declaring an international manhunt of Manas Bank officials,'' Verbickis points out, emphasizing that in order to declare an international search via ''Interpol'', an order from the respective prosecutor is necessary. However, according to the Manas Bank representative, there is no such order in regard to Manas Bank officials.

The Manas Bank chairman is confidant that a solution to the situation can only be found taking into consideration principles of rule of law and current legislation.

As reported, Kyrgyz authorities recently abandoned a case on alleged violations at Manas Bank.

The Kyrgyz financial investigation authority previously said it had established no violations in the operations of Manas bank that, under the Kyrgyz laws, could be interpreted as money laundering. Therefore, there are no grounds for imposing any administrative sanctions against the bank.

The Kyrgyz financial investigative authority said that investigation in the administrative case opened on February 4 this year had not established any proof of possible violations on the part of Manas bank.

Belokons commented that the decision of the Kyrgyz authorities once again confirms that Manas bank has always observed international laws and good governance principles.

Kyrgyz National Bank though has not yet lifted the conservation regime for Manas Bank, which imposed certain restrictions on the bank's operations.

LETA also reported, Kyrgyzstan's interim government took control of Manas bank in the spring of 2010. Media reports at the time pointed out that the government took over the bank because it was very possible that large sums of money could have been withdrawn from the bank by persons close to overthrown Kyrgyz President Kurmanbek Bakiyev.