OREANDA-NEWS. August 31, 2010. Joint Stock Company Parex banka has brought an interlocutory application to Supreme court of the Republic of Latvia regarding the ruling passed by Riga District Court on deposit of seven million Lats for securing possible losses of defendants Valerijs Kargins and Viktors Krasovickis, reported the press-centre of Parex banka.

In accordance with the ruling passed by Riga District Court, Parex banka had to deposit seven million Lats to bailiff; however the sum is not proportional to the possible losses caused to defendants. Such a ruling was the initiative of the Court, still the substantiation for it is not clear and such a necessity does not arise from the essence of the claim brought forward. Parex banka initiated the action on compensation of losses occurred to it and the mentioned deposit for securing possible losses of defendants only creates additional losses to the bank. Actually, the plaintiff, wishing to protect its violated legitimate interests in a fair court, is put in a significantly disadvantaged situation than defendants.

Besides, the deposit sum considerably exceeds not only the possible losses from securing of claim caused by defendants, it also exceeds the practically possible enforcement amount of secured claim. Considering the present situation and the fact that V.Kargins and V.Krasovickis formally do not possess any notable property in Latvia, it is anticipated that the actually mortgaged amount of defendants' property will be much smaller than the total amount of secured claim determined by the Court. For this reason Parex banka litigates the Court’s ruling on the deposit to be made and the bank considers the ruling should be cancelled.

It has already been announced that on 30 July 2010 Parex banka filed a claim against its former Members of the Board – Valerijs Kargins and Viktors Krasovickis – requesting them to compensate losses caused to the bank. The total sum of claim amounts to 62 million Lats.

On 16 August 2010, Riga District Court resolved to secure the claim brought forward by joint stock company Parex banka against its former owners and Members of the Board – V.Kargins and V.Krasovickis – for compensation of losses by mortgaging real estate, movable property and cash funds possessed by V.Kargins and V.Krasovickis as well as payments due to them by third parties. This also refers to monetary funds possessed by them in credit institutions and other finance authorities, including Parex banka.

Simultaneously the Court has resolved to secure Parex banka with compensation of losses which might arise from execution of this decision by depositing seven million Lats in bailiff’s deposit account. Parex banka court ruling was executed on 19 August 2010.