Banks, EU – Baltic States, Financial Services, Investments, Latvia

International Internet Magazine. Baltic States news & analytics Wednesday, 21.03.2018, 05:19

EBRD to buy 25% of Citadele banka shares

Nina Kolyako, BC, Riga, 29.07.2010.Print version
The European Bank for Reconstruction and Development (EBRD) will also acquire shares in the new joint-stock company Citadele banka that is being established on the basis of Parex banka, Minister of Transport Kaspars Gerhards (For Fatherland And Freedom/LNNK) told reporters after a government meeting today.

The government today authorized Latvian Privatization Agency to sell 25% plus one Citadele banka shares to the EBRD. Citadele banka’s share capital is LVL 103 million at the moment, therefore the investment of EBRD in the new bank will be around LVL 25 million, writes LETA.


Parex banka CEO Nils Melngailis stressed that today the government had made the last decision necessary for successful Parex banka break-up. Thanks to the involvement of the EBRD, Citadele banka will launch operations on August 1, he said.


Gerhards said the fact that EBRD will become a Citadele banka shareholder will consolidate the new bank's position, improve its ratings as well as the bank's value.


As reported, following a decision by the Cabinet on March 23 to divide Parex banka and create a new bank, Citadele banka was added to the Commercial Register on June 30 after being issued a banking license by the Finance and Capital Market Commission the previous day.


The Privatization Agency is the founder of the new bank.


Parex banka's liquid assets will be transferred to Citadele banka on the night to August 1. The new bank will take over the branches, most assets and operations of Parex banka.


At the moment, the privatization agency owns a 76.6% stake in Parex banka, whereas EBRD has 19.7%.


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