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Parex banka to transfer transactions on Azerbaijan to new bank

Business Materials 2 July 2010 12:31 (UTC +04:00)

Azerbaijan, Baku, July 2 / Trend N. Ismayilova /

Latvia's Parex banka will retain its position in Azerbaijan, transferring it into the new bank, called Citadele banka, senior vice president and head of the directorate for Parex banka managing capital Robert Idelson said in Baku.

"The division of the bank is based on the principle: good assets will be transferred to Citadele banka, but non-business assets will remain in the" old "bank for the new bank to have a good balance, and work steadily with profit, " Idelson said.

He said that all non-business loans will remain in the old bank. All good assets will be transferred to the new bank. All business of customers will be transferred to a new bank. The name of the new bank - Citadele banka symbolizes financial stability.

"As to customers from the CIS countries, first of all, customers served by the current account and the card will be transferred to the new bank. It will continue to develop on this market. Transactions of the bank on financing, including Azerbaijan, are also in the new bank, because we have no problems and arrears in payments on these loans," he said.

He said that the activity of the new bank will focus on servicing clients in the Baltics and the CIS countries, lending in Latvia, but all others will be secondary markets for the bank, until it remains in state ownership.

JSC Citadele banka is a credit institution established within the restructuring plan of JSC Parex banka and its founder Privatizācijas aģentūra.

The European Bank for Reconstruction and Development (EBRD) will own 25 percent shares of the new bank, created in the restructuring of Parex banka. Since July 1, the government instructed the Privatisation Agency to establish a new lending institution, in which 100 percent will be owned by the state, represented by the agency. The government has decided that 25 percent of the institution will belong to the EBRD June 21.

Part of the funds invested by the state in the bank, namely, 692 million lats, will remain in the old Parex banka, but 230 million lats will be transferred to the new bank.

The state owns 76.6 percent of Parex banka's shares and 19.7 percent - the EBRD.

Parex banka was founded in 1992. Offices, branches and subsidiaries of the bank are located in 12 countries, including branches in Berlin, Stockholm, Tallinn.There is a representative office in Azerbaijan.

The total portfolio of Parex Banka in Azerbaijan today is $200 million, including the portfolio of the leasing subsidiary structure in the country and credit lines.

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