Analytics, Banks, Financial Services, Latvia

Nils Melngailis.

On the other hand, Finance Ministry State Secretary Martins Bicevskis pointed out that the government will still assess possible cooperation with Parex Banka minority shareholders. He also added that the goal is to prepare the bank for sale, and this means that relations with minority shareholders must be put into order. The government has been given the task of ensuring as much control over the bank as possible, Bicevskis added.

As Melngailis pointed out, the contribution of the minority shareholders must be assessed, because the government has invested its funds into the bank, whilst the minority shareholders have not.

As reported, during a shareholders meeting on Friday, a new council was voted in at Parex Banka, LETA found out from the Finance Ministry.

The bank's new council is now made up of: the Latvian Chamber of Commerce and Industry's board chairwoman Zaneta Jaunzeme, Finance Ministry Deputy State Secretary Andzs Ubelis, Hakan Kallaker, former Finance Ministry official Gints Freimanis, State Treasury Administrator Kaspars Abolins and board member at Latvijas Hipoteku un zemes banka (Latvian Mortgage and Land Bank) Rolands Panko.

These persons will replace the bank's previous council – Guntars Grinbergs, Valdis Birkavs, Aija Poca, Hans Eberhard Berndt, Gints Poiss and Viesturs Neimanis.

As reported, the government and former Parex banka majority shareholders have signed an agreement on the takeover of 85% of Parex banka shares by the state. As a result, Parex banka has become a subsidiary of the Mortgage Bank.

Minority shareholders still own 15% of the bank's shares, however, the government has offered to purchase these shares for a symbolic price.