Press Release: State aid: European Commission clears restructuring of Latvian bank Parex

The European Commission has approved under EU state aid rules a thorough restructuring of Parex that before the crisis was Latvia's second biggest bank. Under the plan submitted by the Latvian authorities the core assets and operations of Parex are transferred into a newly established bank called Citadele, with the remainder of Parex turned into a resolution bank. The Commission is satisfied that the restructuring plan will ensure the long-term viability of Citadele banka, whilst allowing an orderly realisation of the assets remaining in Parex. The plan also includes an adequate contribution of the legacy capital holders to the restructuring costs as well as safeguards to limit the distortive effects of the received aid.