Azerbaijan, Baku, Dec.20 / Trend N. Ismayilova /
The Parex Banka representative office in Azerbaijan plans to complete the re-registration process in connection with structural changes made to the main Latvian bank, which is divided into two banks -- Parex Banka and Citadele banka, in January 2011, Parex Bank Baku Office Chief Andrejs Krivans told Trend.
"Renaming the representative office as Citadele banka, is likely will end in January next year, we have already submitted all necessary documents to the CBA, after which the office will pass registration in the country's Taxes Ministry," Krivans said.
The division of the bank is based on the principle that "good assets will be transferred to Citadele banka, and non-business assets will remain in the old bank to ensure that the new bank has a good balance," he said. Parex banka will preserve its position in Azerbaijan by transferring it to Citadele banka.
Citadele banka is a credit institution established within the restructuring plan of Parex banka and its founder Privatizācijas aģentūra. On Aug. 1, the bank passed the process of dividing assets and Citadele banka was established. The European Bank for Reconstruction and Development (EBRD) will own 25 percent of the new bank's shares.
Part of the funds invested by the state in the bank, namely, 692 million lats, will remain in the old Parex banka, and 230 million lats will be transferred to the new bank. The state owns 76.6 percent of Parex banka's shares and the EBRD owns 19.7 percent.
Parex banka was founded in 1992. The bank's offices, branches and subsidiaries are located in 12 countries, including branches in Berlin, Stockholm and Tallinn. It also has a representative office in Azerbaijan.
Parex Banka's total portfolio in Azerbaijan is over $200 million.
