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

Philip Bennett and Laimdota Straujuma. Riga, 23.09.2014. Photo: flickr.com

EBRD is also ready to invest additional capital in the bank. Increasing the bank's capital is going to be the first step, said Bennett. If there is a need to invest in the bank, the EBRD will allot the needed funds, he confirmed after a meeting with Prime Minister Laimdota Straujuma (Unity).

Bennett stressed that the decision to sell the bank to Ripplewood Holdings was successful, and that the sales process was well-organized.

The EBRD considers Ripplewood Holdings a good buyer, Bennett said.

Bennett also stressed that for him this deal was clear and transparent enough.

He believes that it is important that Citadele operate for the good of Latvia's national economy, and facilitate the economic growth in the long-term. EBRD also wants to preserve its funds invested in the bank in order to attract additional investments.

Bennett did not wish to comment on the price of the deal, as the EBRD did not participate in the decisions concerning the price of Citadele. It is more important to consider long-term economic growth. Latvia's national economy can use Citadele and the capital invested in it in order to make strategic decisions. It is also important that the bank's value continues to grow in the long-term.

It does not mean that EBRD does not care about the price of the deal, said Bennet, explaining that the investors' strategy was of far greater importance, and that he considered the proposed strategy to be the right one.

Straujuma emphasized that selling Citadele to U.S. investors will facilitate other investors arrival in Latvia. She believes that it is important to demonstrate that Latvia's economy is stable and fruitful for other global investors.