2008-12-02 On the Restrictions on the Fulfilment of Obligations by the JSC Parex banka

02.12.2008
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Riga, 2 December 2008

Press Release

On the Restrictions on the Fulfilment of Obligations by the JSC Parex banka

The Cabinet of Ministers and the Financial and Capital Market Commission of the Republic of Latvia (the Commission) on 1 December 2008 made a decision to set restrictions on the fulfilment of obligations by the JSC Parex banka (hereinafter – the Bank). In accordance with the Credit Institution Law the Commission has a duty to take measures to ensure the stable operation of the financial sector and provide opportunity to conduct financial transactions in the proper way as well as to protect depositors’ property. The decision was made due to the excessive outflow of deposits and other attracted funds. The decision takes effect upon its announcement to the Bank (on 01.12.2008).

As from now the Bank is permitted to carry out debit transactions (including via internetbank, ATM and in cash) with clients – natural persons for the amount that does not exceed 35 000 lats in a calendar month. The Bank is prohibited from carrying out debit transactions, which are not intended for the purposes of economic activity, including via the internetbank, ATM and in cash, with clients – legal persons. Whereas the following restrictions are imposed on the above transactions with legal persons, which are intended for the purposes of economic activity: 35 000 lats (with staff fewer than 10 employees) and 350 000 lats (with staff between 11 and 250 employees) in a calendar month.

Restrictions are not referable to the transactions intended for the purposes of economic activity by legal persons if the staff is above 250 employees, as well as to the payments to the state budget, to the state and local government authorities, transactions with the Bank of Latvia, payments to the commercial companies which spheres of activity encompass commodity production and provision of services to the sectors governed by the state and local governments, and fulfilment of obligations against these commercial companies, payments of interest of attracted deposits, as well as fulfilment of obligations against the Bank and its subsidiaries.

Ieva Upleja 
Public Relations Adviser
Chairwoman’s Office
Financial and Capital Market Commission
phone: +371 6777 4807
e-mail:ieva.upleja@fktk.lv

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