Banks, Budget, Financial Services, Latvia
International Internet Magazine. Baltic States news & analytics
Tuesday, 09.06.2026, 06:37
Parex banka paid LVL 54 mln to state in interest payments in November-February
Print version |
|---|
As Nozare.lv reported previously, Parex banka ended 2009 with LVL 107.5 million in pre-audit losses, including provisions of LVL 103.5 million against depreciation of the bank's assets.
According to data from the Treasury, the Latvian state has invested LVL 622 million in Parex banka in seven term deposits. According to the reconstruction plan for the bank approved by the Cabinet on May 8, 2009, the government's support for the bank is for the long-term, up until Parex is able to start to repay the state's deposits, writes LETA.
At the moment, 73.4% of Parex banka shares belong to the Latvian Privatization Agency, the European Bank for Reconstruction and Development owns 22.4% of the bank's shares, and the rest of Parex banka shares belong to minority shareholders.
As reported, in his annual report to the Saeima on the government's achievements over the previous year, Prime Minister Valdis Dombrovskis indicated that the acquisition and supporting of Parex banka has seriously affected the state's budget situation, and its successful sale would significantly improve state macroeconomic indicators.
In his address, the premier also expressed hope that successful sale of the currently state-owned bank would strengthen investors' trust in the Latvian economy.
The internationally recognized consultants Nomura International plc are currently working on a model for restructuring of the bank in order to attract investors quickly, as well as ensure the full repayment of the money invested by the state in the shortest possible time period.
Dombrovskis is sure that the bank's stability will be ensured by this restructuring, and this will attract the eye of investors, as well as improving the bank's financial indicators. The bank has already been given the consent of the European Investment Bank for renewing its lending to Latvian businesses.
The agreements with the international lenders foresee that the plan for restructuring of the bank should be approved by the government by March 31.
«The Baltic Course» Is Sold and Stays in Business!
