Only EUR 540,000 recovered from Kargins and Krasovickis in almost one year

RIGA - Almost a year after the court ruling that ordered former Parex Banka board members Valerijs Kargins and Viktor Krasovickis pay the state EUR 124.3 million, only EUR 540,000 has been recovered from the two, as LETA recently found out.

Public asset manager Possessor told LETA that actions were being taken to recover the remaining debt amount.

As reported, the Supreme Court last May reviewed Kargins and Krasovickis, as well as Posessor, Reap and company Reverta's appeals against Latgale Regional Court's ruling of January 25, 2021, and turned all appeals down. Therefore Latgale Regional Court's ruling, which stipulates that the bank's former shareholders must pay EUR 124.3 million to Reap and Possessor, came into force.

In fall 2008, Parex Bank, the second largest bank in Latvia at the time, sought government assistance to stave off financial trouble brought about by the global financial crisis. To support the failing bank, the Latvian government decided to take over Parex Bank from the bank's founders, major shareholders and top executives Valerijs Kargins and Viktors Krasovickis.

The government invested EUR 200 million in the bank, while Kargins and Krasovickis remained in their positions. After signing of the agreement, money continued to flow away from the bank. In total, the government invested EUR 1.7 billion in the bank, EUR 654 million of which have not been recovered.