After the Bank of Lithuania revoked the licence of 4finance, the country's leading consumer loan company, last week, it said it would contest the decision. Less than a week later, however, the company's shareholders sacked its general manager Gediminas Velička.
SMS credit

Kieran Donelly, the head of 4finance Group which owns the company, said in a press release on Wednesday that 4finance respected Lithuanian laws and was ready to cooperate with the country's central bank.

"In the spirit of cooperation rather than litigation, we respect the December 18, 2015, decision of the Bank of Lithuania and are relieving Gediminas Velička of his duties as general manager of UAB 4finance as of December 21, 2015," Donelly is quoted in the press release. "This way we hope to work together with the regulatory institution towards finding the best solution that meets the high standards we adhere to internationally."

4finance had been offering consumer loans under the brands SMSCredit and Vivus. It has been the biggest consumer credit company in Lithuania with a market share of 37.8% over the first nine months of this year. The central Bank of Lithuania revoked the company's licence to issue loans because of "irresponsible lending" and repeated violations of finance regulations.

4finance then said that the punishment was unwarranted and that the company would contest it.

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