Necessary decisions made to ensure successful Parex restructuring

Together with decisions made by the Cabinet of Ministers (CoM) on Tuesday, 27 July, and Thursday, 29 July, regarding the joint-stock company “Parex banka” the government has made all necessary decisions for successful further restructuring – division of Parex bank as of 1 August.   

On 27 July the CoM was introduced with the report prepared by the Ministry of Finance on the progress of JSC “Parex banka” restructuring plan.   

Latvia has submitted for approval to the European Commission (EC) the restructuring plan regarding the state aid provided to the Parex bank, as well as requested additional information. During the revision of the plan the EC prepared a draft Latvia’s Commitment Note which will supplement the EC’s decision in the state aid case. Commitment Note provides guidelines and authorisation of the Minister of Finance and Minister of Economics to sign the Commitment Note together with the Heads of Parex bank and Citadele bank.   

On 27 July the CoM took a decision stating that the Chancellery shall agree with Citadele bank about the state aid (on the basis of Treasury’s deposit) collateral similarly to previously guaranteed state investment in the Parex bank. 

On Thursday, 29 July, the government was introduced with the informative report presented by the Minister of Finance on the final agreement with the European Bank for Reconstruction and Development about the involvement of the bank in Parex bank and Citadele bank and assigned the Ministry of Economics and Ministry of Finance to ensure development and signing of necessary agreements according to key contractual liabilities set out in the informative report.