OREANDA-NEWS  On 26 February Latvian Privatisation Agency (LPA) informed that it entered into negotiations with the Mortgage and Land Bank of Latvia for the conclusion of Parex banka’s Share Purchase Agreement. Parties agreed that the agreement will be signed and become effective in the immediate future. Approval from the Financial and Capital Market Commission is a prerequisite to conclude the deal.

Henceforth, a specially formed interinstitutional work group under the guidance of the Finance Minister will resolve all questions pertaining the negotiations with the lead consultant Nomura Inetrnational plc, increase of Parex banka’s capital, as well as the proposals of possible investors, including the European Bank for Reconstruction and Development, to participate in the equity capital of Parex banka, while the Privatisation Agency will carry out necessary routine activities involving management of shares.

As reported, on 24 February 2009, Government made a decision to transfer state-owned 85,14% of Parex banka’s shares into holding of the Privatisation Agency to ensure further professional actions and prepare the Bank for capital increase and further selling. Under this decision the Privatisation Agency shall take over Parex banka’s shares owned by the Mortgage and Land Bank of Latvia upon the conclusion of purchase agreement.