Parliament rejects Kampars Parex sale

  • 2010-06-03
  • Oskars Magone

The debate largely centered on the efficacy of economy minister Kampars, who would have been in charge of the deal. (photo: Latvian economy ministry)

RIGA - Saeima, Latvian Parliament, has narrowly rejected a proposal to sell Parex Banka's leasing company in Belarus.

The vote was conducted two times, both of which ended evenly at 49 to 49. This resulted in a rejection of the motion.

National news agency LETA reported that the debate surrounding the vote was focussed far more on the ability of Economy Minister Artis Kampars to successfully negotiate the deal, rather than on the substance of the issue itself.

Information concerning the sale of the "Parex" subsidiary for $100 (57 lats) had aroused suspicion among the opposition as to whether taxpayers' interests were being represented. Kampars said it was a symbolic initial sum, comprable to the 1 lat that the government paid in its initial takeover of the company.

The government announced earlier this week that it had set the deadline for the restructuring of the company to July 1.

A statement from the finance ministry on June 1 said that the government asked the “privatization agency to establish a new credit institution.” The plan to split the bank must still receive approval from the European Commission, the statement said.