Banks, Financial Services, Investments, Latvia

Consulting company Nomura International is developing a strategy to sell Citadele banka, said Jakobsons. The work on the strategy is nearing completion, and the government could vote on the strategy in the near future already, writes LETA.

Jakobsons stressed though no one is pressing for the sale of Citadele banka, and if purchase offers are not good enough when the bank is put up for sale the first time, Citadele banka will continue to work without any changes in shareholder's makeup.

On the other hand, selling Parex banka could take several years, because selling a loan portfolio of LVL 700 million is a delicate matter, said Jakobsons. Not only Parex banka but also other banks all over the world were hit by the financial crisis, he reminded.

Parex banka council chairman Michael Bourke said that the situation on the global markets should be taken into consideration, and that getting the best price for Parex banka would require good management of the bank. The new management at Parex banka is made up of professionals who will not hurry to sell the bank but ensure that selling the bank is transparent and that the money the state has invested in Parex banka be returned to the state budget, he said.