Tuesday, November 11, 2008
- Elizabeth II annuls Fred Goodwin knighthood
- Nationalised bank Northern Rock sold to Virgin Money
- Iceland voters reject deal to repay billions to UK, Dutch
- US bank Goldman Sachs accused of fraud
- G20 Summit plans to inject US$5tn into economy before 2011
Photograph: Lee Jordan
Yesterday, Latvia’s government took over Parex Bank, the second largest bank in Latvia. A 51% stake in the bank was taken for a nominal fee. Control of the bank is to be passed to Latvijas Hipot?ku Banka (Mortgage and Land Bank), which is state-controlled.
The deal was first announced on Saturday, and an agreement was signed yesterday. The arrangement reflects similar bank takeovers by other governments across the world, in response to the current banking crisis.A Reuters report yesterday quoted board member Liga Purina as saying that withdrawals are above average, though there are few queues.
The action comes in the wake of Parex admitting to financial difficulties. Until this move, the biggest shareholders were the chairman, Val?rijs Kargins, and Viktors Krasovickis. Parex Bank operates in 14 countries, including Sweden, Estonia and Germany, and is the largest locally-owned Latvian bank.