Banks, Financial Services, Latvia, Legislation

Martins Bondars.

The Krajbanka council has decided that board member Ivars Prieditis will be the acting board chairman from August 17.

The Krajbanka board decided to release Bondars after he said in a statement that he intended to step down on August 17, after working for several years on the development of the bank.

The bank's largest shareholder, AB Bankas Snoras, has met with Bondars to discuss whether he could continue work on Krajbanka council. The matter will be considered at Krajbanka shareholders meeting on September 7.

"Upon undertaking the management of the bank three years ago, my challenge was to reorganize the structure of the bank, to build a team and to increase business volume. This has been done. Within that period the bank has strengthened its market positions as a universal network bank and I consider this period as vital for the development of the bank. This development has to progress logically," said Bondars.

Krajbanka board also includes Dzintars Pelcbergs, Svetlana Ovcinnikova, Andrejs Surmacs and Ilze Bagatska. The bank's council includes Raimonds Baranausks, Aleksandrs Antonovs, Olegs Suhorukovs, Naglis Stancikus and Maksims Ancipolovskis.

In a discussion with LETA, Bondars emphasized that he has done everything in three years previously agreed upon with the bank's shareholders. ''When the job is done, it is time doing something else,'' said Bondars.

Bondars, however, has agreed to remain with the bank and work on the bank's council.

Asked about his future plans outside the bank, Bondars emphasized: ''I do not intend to establish a new political party and join one.'' However, he added that he has some plans, which he does not wish to reveal at the moment.

It can be understood that Bondars intends to continue working in the business sphere.

As reported, in the first quarter of the year Krajbanka posted LVL 2.519 million in losses.

The bank's credit portfolio reached LVL 339.243 million in the first quarter, whilst deposits at the bank reached LVL 464.739 million.

As already reported, Krajbanka posted LVL 2.784 million in profit last year.

Lithuanian bank Snoras, controlled by Russia's Konversbank, is the largest Krajbanka shareholder.