2010. 16 August 2010 

Today, 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 – Valērijs Kargins and Viktors 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 their monetary funds deposited in credit institutions and other finance authorities, including Parex banka. This means that V. Kargins and V. Krasovickis will discontinue receiving the notable interest payments for their deposits in 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 a certain amount of money in the account of the office of the Court.

 

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

Considering the loan and deposit agreements concluded between the bank and both of the former shareholders, who also were the bank’s majority shareholders at the same time, as well as persons related with them during the period from 1 January 1995 until 5 December 2008, the bank has found a succession of transactions which do not comply with its interests. These transactions were executed applying terms and conditions which significantly differ from the terms and conditions that unrelated parties would conclude such deals.Analysis shows that these transactions have enabled the former Members of the Board to acquire wealth at the bank’s expense for more than 62 million Lats during the mentioned period.