Press Release: State aid: Commission opens in-depth investigation into aid package for Latvian JSC Parex Banka

The European Commission opened on 29 July, 2009, under EC Treaty State aid rules an in-depth investigation into state support measures for the Latvian JSC Parex Banka. This was the first step towards finding a viable long-term solution for the bank, in close contact with the Latvian authorities. A rescue package for Parex in the form of state guarantees, liquidity support and a recapitalisation measure was approved by Commission decisions of 24 November 2008, 11 February 2009 and 11 May 2009. A restructuring plan for Parex was submitted on 11 May 2009. The Commission is to examine whether the restructuring plan will enable Parex to return to long-term viability while avoiding undue distortions of competition. The opening of an investigation is common for state interventions in the banking sector, ensures legal certainty for the concerned market players and gives interested parties the possibility to submit comments on the proposed measures. It does not prejudge the outcome of the procedure.