OREANDA-NEWS. March 02, 2010. Parex banka registered an increase in its equity capital by LVL 31.5 million. The bank’s capital was increased in accordance with a decision taken by the Latvian Cabinet of Ministers, reported the press-centre of Parex banka.

The capital increase has been effectuated by capitalizing the relevant portion of an existing State Treasury deposit in the bank; thus, no additional funding was required for this purpose. Furthermore, the transaction does not affect the bank’s overall obligations towards the Latvian state.

The government decided to provide for a closed issue of shares, thus increasing the equity capital of Parex banka by LVL 31.5 million. Following the decision, the bank issued 31.5 million non-voting shares with a face value of LVL 1 apiece. The Latvian Privatisation Agency purchased the issue thus expanding its participation in the bank’s equity capital. Since the registration of these changes, the Privatisation Agency remains the majority shareholder with 77%, while the European Bank for Reconstruction and Development holds 20% of the shares.

The proportion of voting shares will not change – The EBRD’s stake in the bank is equal to 25% plus one share, while the Privatisation Agency controls 70.6% of voting shares.