OREANDA-NEWS. On May 11, 2009 the European Commission allowed the Latvian Government to purchase the new issue of shares in Parex banka; thus, raising the Bank's share capital. The European Commission's approval was necessary for Parex banka to improve its capital adequacy ratio to 11%, reported the press-centre of Parex banka.

As previously announced, the Cabinet of Ministers conceptually approved the participation of the EBRD in Parex banka’s equity capital on 24 March 2009. Similarly the Government reached an agreement to increase Parex banka’s capital by 227 million lats – 165 million will be invested in equity capital by means of Privatisation Agency obtaining registered voting shares of the new issue for the nominal value of 1 lats, but 62 million will be invested in subordinated capital.

Moreover, Share Purchase Agreements between the EBRD and Latvian Government were signed on 16 April 2009. Agreements provide that following the increase of equity capital the EBRD will purchase 57,506,825 ordinary shares comprising 25% and 1 share of the Bank's equity capital.