OREANDA-NEWS. March 31, 2010. The JSC “Pare banka” re-structuring plan has been completely prepared and on March 31 submitted to the European Commission (EC) to agree on the state aid for the finance institution.

On the basis of the decision made by the Cabinet of Ministers on March 23 on the JSC “Parex banka” re-structuring model, “Parex banka” has prepared a re-structuring plan in compliance with the EC guidelines. According to the EU state aid control requirements the Ministry of Finance shall submit the “Pare banka” re-structuring plan to the EC for approval; the same has already been done with international lenders within the set term – on March 31, 2010. It is planned that the EC opinion will be submitted till June 30, 2010.

On March 23, the Cabinet of Ministers took a decision on the JSC “Parex banka” re-structuring model separating part of assets into a new company (new bank). This model in compliance with the EC guidelines was recommended to the government by the financial consultant “Nomura International plc” because it has several notable advantages in respect of recovery of public investments and interests of the bank’s clients.