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Latvian bank plans merger

  • 1999-04-01
RIGA (BNS) - Representatives of Latvijas Kreditbanka will develop a plan for a merger with another Latvian commercial bank by April 7.

The bank's acting President Andris Vigants told the Baltic News Service that the bank was working on a merger but did not specify the other bank to be involved in this merger.

He said the merger project will be developed by both banks and presented to Latvijas Kreditbanka's shareholders for approval on April 7.

According to the audited financial report for 1998, the bank's capital and reserves amount to 1.79 million lats ($3.08 million). Under the law regulating credit institutions the minimum required amount is 2 million lats.

Latvian Commercial Banks' Association President Teodors Tverijons said Latvijas Kreditbanka started looking for merger possibilities already a year ago.

Tverijons admitted that the bank was small and it also was not allowed to accept personal deposits. He said that Kreditbanka had two ways out - either to find a new shareholder, who would invest in the bank around 1 million lats, or to merge with some other bank.

He was certain that the merger would not cause any disruption in the business of Latvijas Kreditbanka's customers. At the end of last year Latvijas Kreditanka was the smallest Latvian commercial bank in terms of assets.