Press Release: State aid: Commission approves amendments to Latvian support for JSC Parex Banka

The European Commission approved, under EC Treaty state aid rules, amendments to the original recapitalisation measure (Tier 2 capital) of the Latvian JSC Parex Banka, initially approved on 24 November 2008. Under the proposed changes, Latvia would acquire newly issued ordinary shares and subordinated term debt. The Commission found that the amendments were in line with its Communication on the recapitalisation of banks during the crisis. In particular, the measure is subject to an adequate remuneration, does not exceed the minimum necessary and is limited in time. The amended support package for JSC Parex Banka is therefore compatible with Article 87.3.b of the EC Treaty, which allows aid to remedy a serious disturbance in the economy of a Member State.