Today, on 26 August 2011, in accordance with the announced agenda, the extraordinary shareholder meeting of joint stock company Parex banka has adopted a decision on increasing the Bank’s core capital, introduced amendments related with the increase of core capital in the Bank’s Articles of Association, and approved the provisions for increasing the core capital. 

In accordance with the adopted decisions, Parex banka’s core capital is to be increased by 20 million Lats by emitting 20 million regular registered shares with voting rights, the nominal value of one share being one Lat. 

The increase of the core capital is performed in accordance with the restructuring plan and it will ensure stability of Parex banka’s activity and performance of regulatory requirements.  Similarly to the previous increase of the core capital, a part of the accrued interest for term deposits that the State has deposited with the Bank is going to be used this time as well. Thus additional funding from the State for the purpose of increasing the core capital is not necessary. As a result of the transaction, the total amount of Parex banka’s liabilities toward the State will remain unchanged.  Subscription to new shares will be launched today, on 26 August, and it will continue until 26 September 2011.


About Parex banka:
Since 1 August 2010 when Parex banka launched its activity as a solution bank, simultaneously discontinuing provision of such classical bank services as account and deposit services, loans and others. The main goal of Parex banka is to recover State investments to the maximum amount possible.
In May 2011 Parex banka successfully implemented the first of its very important tasks: it repaid the last instalment of the international syndicated loan guaranteed by the State in the amount of 164 million Lats. Bank repaid this sum from its own funds thus releasing the State and taxpayers from voluminous liabilities.
Majority shareholders of Parex banka are the State of Latvia which is represented by Privatization Agency and the European Bank for Reconstruction and Development (EBRD).
Please visit Parex banka’s website to find out more: www.parex.lv.

Additional information:
Marita Ozoliņa-Tumanovska
Head of Communications and Marketing  Department
Tel. 67779142 or 29287169
e-mail: Marita.Ozolina@parex.lv