Estonian lender LHV Pank has acquired private loans portfolio from the local branch of Danske Bank.

The move comes at the time when the Danske Bank Estonia branch has been liquidated following money laundering charges.

The acquisition strengthens LHV Pank’s loan portfolio by €393m and adds around 10,000 private clients to its books.

The deal also included the transfer of leasing, collateral and other related agreements to LHV Pank.

Primarily, the portfolio comprises home loan agreements as well as consumer loans, leases and student loans.

Additionally, four Danske Bank employees also moved to LHV Pank as part of the agreement.

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In a statement, LHV Pank and Danske Bank also noted to have informed all customers who have been affected by the transfer.

“The transfer has been made as convenient as possible for the clients. This means that LHV Pank has created a personal account for each client who has a loan agreement, to which the client should henceforth redirect their loan payments.

“The loans were transferred to LHV automatically and there is no need for the clients to go through a refinancing process,” the statement added.

Mortgage loans will also be formalised in the name of LHV without levying any additional fees on clients.

The deal was first announced in June this year.

LHV Group is one of the largest financial services groups in Estonia. It has two key subsidiaries- LHV Pank and LHV Varahaldus.