On 23 July 2009, Peter Reiniger Business Group Director for Central Europe and the Western Balkans from the European Bank for Reconstruction and Development visited Latvia to sign subordinated loan agreement with Parex banka. This will enable the share purchase deal to be finalised in August 2009. Nils Melngailis, Chairman of Parex banka's Management Board, commented on the signed subordinated debt agreement: “We are very pleased that since 29 June 2009 the EBRD is represented in Parex banka's Supervisory Council. Moreover, with the signed agreement we are one step closer to the EBRD's entrance in Parex banka's share capital; thus, sending a very positive sign not only to our existing clients, but also to potential clients and investors in regards to the development and recovery potential of the Bank.” Peter Reiniger, Business Group Director for Central Europe and the Western Balkans from the EBRD stated: "We look forward to completing our investment in Parex bank which will be our largest transaction in Latvia to date. EBRD's participation in the recapitalisation of Parex bank is an indication of our confidence in the recovery process of both the bank and the Latvian economy. " As previously announced, a prerequisite to completion of the Sale Purchase is signing of the agreement by which the EBRD will provide Parex banka with a subordinated loan of € 22 million qualifying as Tier 2 capital. Following the increase of equity capital at Parex banka the EBRD will purchase 25% and one stake in the Bank. About Parex banka: Founded in 1992, Parex banka offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is the only partner of American Express in Latvia and Lithuania, allowed to issue American Express credit cards. The Latvian Privatisation Agency is the majority shareholder of Parex banka, currently holding 95,3% of the Bank's shares, following the EBRD's investment, this will be reduced to 70,3 %. Additional information: Inga Saleniece Corporate Communications and PR Parex banka Ph: 6777 8870 vai 2 96564629 E-mail: pr@parex.lv