Parex to take former owners to court

RIGA - Parex Bank has announced that it has filed a suit in court against its former board members, Valerijs Kargins and Viktors Krasovickis, over unfair business practices that resulted in a loss for the bank.

Parex, Latvia's largest homegrown bank, was bought out by the government at the onset of the economic crisis in the country.

''The bank has analyzed loan and deposit agreements that were concluded between January 1, 1995, and December 5, 2008, between the bank and its two former board members, who were also the bank’s majority shareholders, as well as with other persons related them. The bank has identified a series of transactions which were concluded in violation of the bank’s interests. Terms applied to the bank were particularly disadvantageous and much different than those which would usually apply to agreements concluded by unrelated parties,'' communications department head Indra Zinkevica told ''Nozare.lv''.