Archive | Latvia RSS for this section

Godmanis resigned as PM

Ivars Godmanis, the Prime Minister of Latvia, resigns along with the rest of his government amid concerns about handling the economic crisis.

Ivars Godmanis

Ivars Godmanis

Economic problems and corruption charges have caused the popularity of the current cabinet to plummet. In January 2009, anti-government protests turned into the worst riots the country has seen since re-gaining independence in 1991.

On 20 February 2009, Godmanis resigned as Prime Minister along with the rest of his government amid concerns about handling the economic crisis.

He was the first Prime Minister of Latvia after the country became independent from the Soviet Union, and he became a Prime Minister for the second time in December 2007. Read More…


Latvian government takes majority stake in Parex Bank

Yesterday, Latvia’s government took over Parex Bank, the second largest bank in Latvia. A 51% stake in the bank was taken for a nominal fee. Control of the bank is to be passed to Latvijas Hipotēku Banka (Mortgage and Land Bank), which is state-controlled.

The deal was first announced on Saturday, and an agreement was signed yesterday. The arrangement reflects similar bank takeovers by other governments across the world, in response to the current banking crisis. A Reuters report yesterday quoted board member Liga Purina as saying that withdrawals are above average, though there are few queues.

The action comes in the wake of Parex admitting to financial difficulties. Until this move, the biggest shareholders were the chairman, Valērijs Kargins, and Viktors Krasovickis. Parex Bank operates in 14 countries, including Sweden, Estonia and Germany, and is the largest locally-owned Latvian bank.