OREANDA-NEWS. March 29, 2010. The new Parex banka’s restructuring model foresees that all of the bank’s depositors will automatically be transferred to the new bank. This will in no way affect the bank’s cooperation with customers, and all the existing customer agreements with the bank will remain effective.

The new bank will operate successfully and persistently, without requiring additional state support or the restrictions that are currently burdening Parex banka’s work. Consequently, the bank will be able to develop services far more dynamically, offering its customers a wide range of products, including lending services.

Parex banka has received an approval from the International Monetary Fund and the Financial and Capital Markets Commission (FCMC) to increase credit limits to its most loyal corporate customers. Moreover, the bank has reached an agreement with the European Investment Bank on the provision of EUR 100 million for loans to small and medium enterprises, as well as concluded a trade finance agreement with the European Bank for Reconstruction and Development (EBRD). These agreements will allow the new bank to launch operations actively, thus, facilitating the economic development in Latvia.

The business model of the restructuring plan provides for the development of the two parts of the bank, each with different strategies, and both fully committed to fulfil all binding liabilities towards customers. The restructuring plan is subject to European Commission approval.