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

The European financial sector has not fully recovered from the crisis and the demand for Citadele could be low, explained Zile.

There are around 100 state-supported commercial banks in Europe. However, there has been no precedent of a state being forced to sell such a bank, pointed out Zile.

As reported, at closed meeting on July 16, the government decided to resume the sale of Citadele bank's assets. The Privatization Agency currently holds 75 percent of Citadele bank's shares, whereas the European Bank for Reconstruction and Development owns 25 percent plus one share.

On July 24, All For Latvia!-For Fatherland And Freedom/LNNK decided to call on Prime Minister Valdis Dombrovskis (Unity) and Economy Minister Daniels Pavluts to halt all activities that deal with the sale of Citadele bank.

Yesterday, Harmony Center, supported by Greens/Farmers, submitted amendments to the Law on Closure of Privatization of State-owned and Municipal Property and Termination of Usage of Privatization Certificates in order to postpone the sale of Citadele bank.