Restrictions on debit operations will not affect the daily life of private individuals; no changes for the majority of commercial payments

On 1 December 2008, the Cabinet of Ministers of Republic of Latvia and the
Financial and Capital Market Commission (FCMC) jointly decided to restrict
debit payments at Parex banka. 

The temporary measure made by the FCMC and the Cabinet of Ministers is a
facility available under the Credit Institution Law of Latvia and is designed
to prevent the excessive outflow of deposits and other funds from credit
institutions. 

Parex banka has been actively working with our customers to stabilize the
unnecessary withdrawal of funds from the Bank. However, this decision was made
to further secure the Bank's operations. 

Only a small number of Parex banka's clients may be inconvenienced by this
decision, as, in fact, these restrictions will only apply to transactions
involving unsubstantiated outflow of funds from the Bank. 

The Bank will continue to perform debit transactions (i.e., through online
banking, ATMs and by cash) up to a total of LVL 35,000 per month for private
individuals. The Bank will be restricted from performing debit transactions
(i.e., through online banking, ATMs and by cash) for corporate clients if these
transactions are not related to commercial activities. The debit operations
related to commercial activities for corporate clients have been limited to LVL
35,000 (for companies employing up to 10 people) and LVL 350,000 (for those
with 11 - 250 employees) per month. 

These restrictions will not apply to legal entities where the number of
employees exceeds 250; payments to the Latvian State budget, State and
municipal institutions; transactions with the Bank of Latvia; payments to
enterprises, whose operations are related to production of goods and services
in regulated industries; deposit interest payments; and liabilities to the Bank
and its subsidiaries. 


Additional information:
Irena Mizisa
Head of Investor Relations
Ph.: + 371 6 777 8565
Fax: +371 6 777 8569
e-mail: investor.relations@parex.lv