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Discussions on agreement with Citadele investors still in progress in Latvia

BC, Riga, 14.10.2014.Print version
Currently, discussions on the draft agreement with the potential Citadele investor, the U.S. investment fund Ripplewood Holdings, are still in progress in Latvia, reports LETA.

Before signing the agreement, the project will have to be reviewed and approved by the government, the Privatization Agency spokesman Guntis Karklins said.

 

Latvia has to sign the agreement by the end of this year, whereas all the necessary bank surveillance institution licenses must be collected and the agreement finalized by March, 2015.

 

Karklins stressed that after the agreement is signed, receiving Latvian, Lithuanian, and Swiss bank surveillance authorities' permission could take five to six months, as it is necessary to assess the potential investors following several criteria – free capital sufficiency, financial stability, legitimacy of the origin of funds, investor's reputation, business plan. Thus, in order to receive these licenses in time and to finalize the agreement by March 31, 2015, Citadele sale agreement should be signed as soon as possible, depending on the draft agreement coordination process.

 

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 European Bank for Reconstruction and Development. 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.






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