Banks, EU – Baltic States, Financial Services, Investments, Latvia, Legislation, Markets and Companies

Citadele is entering a new phase, Peterschmitt said in a phone interview with Bloomberg.

"I wouldn't see the non-resident business as a strategic focus," Peterschmitt said. "What we're looking at here is real bread and butter traditional banking for the benefit of households, businesses."

The EBRD is ready to participate in additional capital increases should they be needed, added Peterschmitt. Once ownership changes hands, shackles placed on "Citadele's" growth under Latvia's bailout will end and the bank will begin developing domestically and regionally.

"It's been a patient four years of painstaking work, to redress this bank and make it a credible, respected player in this market despite the limitations put on it by the state aid case," Peterschmitt said.

As reported, on September 16 the government decided that Citadele shares would be sold to the U.S. fund Ripplewood Holdings. The deal was also approved by the EBRD. 25% of the bank's shares will be acquired by Ripplewood Holdings, 50% by currently undisclosed investors, and the EBRD will keep its 25% stake in Citadele.

According to information obtained by LETA, one of the potential investors in Citadele bank is former U.S. Federal Reserve Chairman Paul Volcker.