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Latvian government takes majority stake in Parex Bank

Tuesday, November 11, 2008

Yesterday, Latvia's government took over Parex Bank, the second largest bank in Latvia. A 51% stake in the bank was taken for a nominal fee. Control of the bank is to be passed to Latvijas Hipotēku Banka (Mortgage and Land Bank), which is state-controlled.

The deal was first announced on Saturday, and an agreement was signed yesterday. The arrangement reflects similar bank takeovers by other governments across the world, in response to the current banking crisis. A Reuters report yesterday quoted board member Liga Purina as saying that withdrawals are above average, though there are few queues.

The action comes in the wake of Parex admitting to financial difficulties. Until this move, the biggest shareholders were the chairman, Valērijs Kargins, and Viktors Krasovickis. Parex Bank operates in 14 countries, including Sweden, Estonia and Germany, and is the largest locally-owned Latvian bank.


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  This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

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