The EBRD

The European Bank for Reconstruction and Development (EBRD) became a shareholder in Parex banka in September 2009, after purchasing 25% plus one share in the bank. Participation of the EBRD in Parex banka’s shareholder structure gives the Bank additional stability, facilitating further development of the institution and strengthening its positions in the Baltic States, Europe, and the CIS.

Involvement of the EBRD in the capital of Parex banka in retrospection:

16 April 2009: President of the EBRD Thomas Mirow and Prime Minister of Latvia Valdis Dombrovskis, Chairman of Parex banka’s Management Board Nils Melngailis and Chairman of Privatisation Agency Arturs Grants signe Share Purchase Agreements providing that following the increase of equity capital the EBRD will purchase 25 percent and 1 share of Parex banka’s equity capital;
May 22, 2009: Privatisation Agency makes an investment to increase the capital of Parex banka;
June 29, 2009: A representative of the EBRD is elected to Parex banka’s Council;
July 23, 2009: Parex banka and the EBRD conclude a subordinated loan agreement worth EUR 22 million and agree that the share purchase transaction will be conducted in two phases;
September 3, 2009: Privatisation Agency completes the first phase of the transaction selling of 25% plus one share in Parex banka to the EBRD.

The EBRD is an international financial institution, which supports financing of different projects in 29 countries worldwide, including in Latvia. Support to the financial sector is a core activity of the EBRD. The EBRD has a vast experience in the restructuring of the banking business, and the organisation’s involvement in the capital of banks that are to be restructured is seen throughout the world as a positive signal for sustainability and developmental potential of the particular institution.