OREANDA-NEWS. On December 16, 2008 The Swedish and Danish Central banks have announced their willingness to close a SWAP agreement with the Bank of Latvia, in order to support the State and help stabilize the Latvian banking sector, reported the press-centre of Parex banka.

The proposed agreement will allow the Bank of Latvia to borrow up to EUR 500 mln in return for Latvian lats. The decision is directly linked to the stabilization and further recovery of the Latvian economy.

“We believe that the support proposed by Swedish and Danish Central Banks will be very positive for both the Latvian State and Parex banka’s clients. The decision reinforces our belief that the situation is stabilising giving additional security to our clients with deposits in Parex banka,” Nils Melngailis Chairman of Parex banka says.