OREANDA-NEWS. December 02, 2011. In accordance with the announced agenda, the extraordinary shareholder meeting of joint stock company Parex banka has adopted a decision on increasing the Bank’s share capital, introduced amendments related with the increase of core capital in the Bank’s Articles of Association, and approved the provisions for increasing the core capital, reported the press-centre of Parex banka.

In accordance with the adopted resolution, Parex banka’s share capital will be increased by 19.8 million Lats which is a significantly smaller sum than planned previously. The changes are related with the resolution on supporting the model for Parex banka’s further activity, which provides the Bank’s change of status, adopted by the Cabinet of Ministers on 22 November 2011. Parex banka‘s giving up of its credit institution licence and becoming an asset management company means that performance of capital sufficiency requirements will no longer be binding for the Bank. Thus the amount of the sum to be invested in the Bank’s share capital was reviewed and decreased accordingly.

The Bank’s share capital will not be increased at the budget expense, it takes place by means of capitalizing the deposits made by the Ministry of Finance instead. Besides the State does not plan to make any new investments in Parex banka in the future.

The amount of Parex banka’s increased share capital will be 311’027’295 Lats and it will consist of 250’883’439 registered shares with voting rights and 60’143’856 registered shares without voting rights.

Subscription to new shares will be launched today, on 28 November, and it will continue until 28 December 2011.

In accordance with the previously announced procedure and compliant to the shareholders' votes, two members of the audit committee, whose term of office had expired, were re-elected.