OREANDA-NEWS. On December 01, 2008 the Cabinet of Ministers of Republic of Latvia and the Financial and Capital Market Commission (FCMC) jointly decided to restrict debit payments at Parex banka, reported the press-centre of Parex banka.

The temporary measure made by the FCMC and the Cabinet of Ministers is a facility available under the Credit Institution Law of Latvia and is designed to prevent the excessive outflow of deposits and other funds from credit institutions.

Parex banka has been actively working with our customers to stabilize the unnecessary withdrawal of funds from the Bank. However, this decision was made to further secure the Bank’s operations.

Only a small number of Parex banka’s clients may be inconvenienced by this decision, as, in fact, these restrictions will only apply to transactions involving unsubstantiated outflow of funds from the Bank.

The Bank will continue to perform debit transactions (i.e., through online banking, ATMs and by cash) up to a total of LVL 35,000 per month for private individuals. The Bank will be restricted from performing debit transactions (i.e., through online banking, ATMs and by cash) for corporate clients if these transactions are not related to commercial activities. The debit operations related to commercial activities for corporate clients have been limited to LVL 35,000 (for companies employing up to 10 people) and LVL 350,000 (for those with 11 – 250 employees) per month.

These restrictions will not apply to legal entities where the number of employees exceeds 250; payments to the Latvian State budget, State and municipal institutions; transactions with the Bank of Latvia; payments to enterprises, whose operations are related to production of goods and services in regulated industries; deposit interest payments; and liabilities to the Bank and its subsidiaries.