| Latvian State Treasury lends another EUR 50 mln to ensure liquidity of ailing Parex Bank |
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| Tuesday,December 16,2008 Posted: 15:42 BJT(0742 GMT) |
| From:Baltic News Service Article type:Original |
RIGA, Dec 15, BNS - The Latvian State Treasury has lent another 50 million euros to ensure liquidity of the ailing Parex Bank, said Finance Ministry's spokeswoman Diana Berzina.
She said that on Dec. 12 the State Treasury deposited 20 million euros in Parex Bank for a term of one month, and another 30 million euros were deposited in the bank on Monday.
Berzina was not able to tell whether the State Treasury will have to invest more resources in ensuring liquidity of Parex Bank.
So far the state has lent slightly more than 450 million lats (EUR 640 mln) for Parex Bank's liquidity.
Finance Minister Atis Slakteris has set up a task force to supervise Parex Bank's liquidity administration, headed by State Treasury manager Kaspars Abolins. Berzina said earlier that the task force has been set up to ensure operative information exchange among all involved parties to ensure the bank's liquidity and coordinate the state support to the bank.
Parex, Latvia's second largest bank, sought government assistance to stave off financial trouble brought about by the global financial crisis. To support the failing bank, the Latvian government on Nov. 8 decided to take over a controlling 51 stake in Parex through the state-owned Latvian Mortgage and Land Bank. As situation at Parex Bank failed to develop in the expected direction, a decision was made to take over also the 34 percent of Parex shares that originally were supposed to remain under ownership of the bank's major shareholders and top executives Valerijs Kargins and Viktors Krasovickis.
The remaining 15.17 percent of shares in Parex Bank still are with its minor shareholders, but the government had launched talks about taking over all shares in the bank.
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