Banks, Financial Services, Latvia

Hipoteku banka Chairman of the Board Rolands Panko admitted that the final decision is still to be made, however, he did not comment as to which decision would be the necessary one, writes LETA.

As reported, the government started to review the situation already at the end of 2010. At that time Panko informed the media that restructuring is moving ahead according to plan, so that by 2013 a development bank would be established, which would be an important government instrument to provide support for entrepreneurs, especially to those only starting their business activities.

Even though Hipoteku banka no longer provides mortgage and consumer loans, Panko did not comment on what will happen to those debtors, who received funding before. Also the information about the future of part of Hipoteku banka’s assets still remains classified.

According to the European Commission's guidelines, the goal of restructuring is to create a development institution to carry out government support programs by making effective use of Hipoteku banka’s infrastructure, its intellectual and financial potential. The restructuring must favor the state and at the same time ensure uninterrupted continuation of the government's support programs.