OREANDA-NEWS. March 29, 2010. Parex banka is glad to announce that the bank has signed an agreement with the European Investment Bank on 23 March 2010. The signed agreement provides funding in amount of EUR 100 million for co-financing small and medium sized enterprises in Latvia. Lending of these funds will start after receiving approval from the European Commission for the bank’s restructuring plan and receiving respective guarantees from the Latvian government.

Nils Melngailis, Chairman of Parex banka’s Management Board states: “Loans to corporate clients are a very important instrument, allowing the bank to grant necessary financing to Latvian enterprises; thus, providing support in reviving the Latvian economy. The reached consent with the European Investment Bank verifies the trust of international financial institutions in Parex banka and stabilisation of its operations."

Parex banka will use the financial resources provided by the European Investment Bank issues loans to those enterprises, which plan to expand competitive and environmentally friendly development projects. The conditions of the agreement provide that the European Investment Bank will disburse the funding in several instalments. Parex banka has started to prepare the necessary procedures in order to receive an approval from the Financial and Capital Market Commission as well as other preparatory tasks in order to be ready to commence lending immediately after receiving the approval of bank’s restructuring plan from the European Commission. The Financial and Capital Market Commission has removed the prohibition for Parex banka to issue new loans utilising funding received from the European Investment bank.