In reply to the information published on BNS on November 28, about Parex banka's plans to reduce costs by 15-20%, we would like to specify that the cost reduction plan had been on Parex banka's agenda before it encountered liquidity problems. The management of the Bank had been aware of the probable decrease in the growth pace and saw that the expenditure allocated for growing company's assets and increasing its presence in the market, potentially could be saved. It should be noted that cost reduction programs are already being actively implemented in other large domestic and foreign banks. The purpose of the plan is to slash bank's expenses by 15-20%; however, there is no implication of laying off 20% of the employees. The remuneration package of most of the employees consists of both, the fixed rate and the changeable rate, dependant on the growth. Thus, it is possible to increase efficiency without considerably changing the number of employees. Besides, a number of self-established subdivisions of the bank could possibly be restructured into the outsource service providers, resulting in retention of work places and handing over the functions to a company with a respective experience. Meanwhile, the Bank abstains to specify the subdivisions involved. Furthermore, considerable savings are feasible in the areas of administrative expenses, marketing and travel costs. Parex banka will provide an official statement should any changes occur.