Latvian government takes 51 pct control of Parex Bank

Latvian government takes 51 pct control of Parex Bank The Latvian government took control of Parex Banka AS, the country's second biggest lender, to safeguard the financial system, Prime Minister Ivars Godmanis said, Bloomberg reports. According to Latvian Finance Ministry Latvijas Hipoteku Un Zemes Banka AS, the only state-owned lender in Latvia will buy 51 percent of Parex for LVL 2. Parex had about EUR 775 million in syndicated credits that it would have to pay back next year. "If the state did not help Parex then it would cost the country billions,'' Finance Minister Atis Slakteris said at a press conference. "The decision was to either allow a bankruptcy or ensure the bank's stability,'' he said. State-controlled enterprises including Latvijas Valsts Mezi AS, the forestry company, Latvenergo AS, the country's electricity... [read full story]