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Tuesday 20.03.2018 | Name days: Made, Irbe

Court decides in favour of Parex shareholder

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Riga Regional Court has decided in favour of Parex bank (now known as Reverta) shareholder Valery Kargin’s son Rem Kargins in his claim against Reverta and collected 10 542 060 LVL.

Аuthor: Lita Krone/LETAThe court also terminated the contract and collected an additional amount of 12 000 LVL in favour of Kargin for services provided by his lawyer.

The full text will be available on June 12. It will then be possible to challenge it within 20 days at the Supreme Court. As Reverta’s representative, sworn lawyer Agris Bitans, noted after the court hearing, the decision of the court will be challenged once it is available.

As reported by the head of Reverta’s communication and marketing directive Marita Ozolina, the chairman of the bank Kristofers Gviljams is surprised by the court’s unexpected decision.

“Reverta does not have the full text of the court’s decision yet. With that, it is impossible to comment the court’s legal argument in this situation. I will say, however, that the court’s decision is more than odd, and Reverta will definitely challenge it. On top of that, the court has demonstrated inconsistency, because it had decided in favour of Reverta and the state in a similar case in the past”, – Gviljams comments.

The bank’s manager admits that Reverta is still forced to continue paying former Parex owners – Valery Kargin and Viktor Krasovickis – and their family members large interest rates for their deposits, adding their yearly income by 2.3 million LVL. “This is not beneficial for the state, the interests of which Reverta represents, but someone seems to enjoy this practice”, – he said.

Rem Kargin’s representative – lawyer Ugis Grube – had previously said that Kargin had a contract with Parex bank regarding locked term-deposit service. There was also an additional agreement, which allowed the use of the deposit as the bank’s subordinate capital. A subordinate capital meant slightly higher interest rates and the depositor’s refusal to demand the return of his deposit ahead of time.

In March, 2013, the decision of Parex Bank to revoke its credit institution’s license was accepted along with the decision of the Latvian Finance and Capital Market Commission. The name of the bank was also changed to Reverta. With that, Reverta no longer has any rights to form a subordinate capital and attract deposits from other people.

As Grube emphasized, in accordance with regulations, only a licensed credit institution is authorized to use that, not a commercial association.


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