We would like to acknowledge the Latvian Government's decision to follow the principles developed by the leaders of European Union member states, granting State support to the financial sector in the context of the global liquidity crunch. State support to the financial sector in this way has been introduced in a similar way in the vast majority of European Union member states, including, Sweden (46% of the total assets of the Latvian banking sector is held by financial institutions in Sweden), Germany, the United Kingdom, Hungary and others. Parex banka is the largest independent financial institution with a local capital base in Latvia, and today the Government has affirmed conditions, by which support to the Bank will be provided. Within the framework of the stabilisation package, Parex banka received State guarantees for its liabilities; thereby, enabling the Bank to preserve its liquidity at a sustainable level, and obviating possible doubts about the Bank's capabilities of raising funds in the international debt markets. State support has been granted on the basis of business provision, meaning that the shareholders of the Bank have to take certain obligations in favour of the State. In accordance with the terms of the agreement between the Bank and the Latvian State, 51% of Parex banka's shares are being sold to the State, with existing shareholders having the rights to buy back the stake. „We fully recognise the correctness both of our and the State actions. The current cooperation model will help both our clients, shareholders and the management. Our clients, who have entrusted their funds to the Bank, will support the Government's actions, as Parex banka has been repeatedly demonstrating the timeliness of its actions for over the 20 years of its existence,” the Chairman of Parex banka's Council Guntars Grinbergs says. Additional information: Indra Zinkevica Head of International Communications Parex banka Phone: +371 67778571 or +371 29139449 E-mail: indra.zinkevica@parex.lv