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Sunday 22.04.2018 | Name days: Armanda, Armands
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M2M Private Bank head: government struggles with decision making

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU, M2M Private Bank head Roberts Idelsons

M2M Private Bank head Roberts Idelsons

The government of Latvia finds it difficult to decide on any kind of decisions, except for those regarding the state budget, says AS Citadele banka former management level employee and the current Russian commercial bank M2M Private Bank head Roberts Idelsons.

He admits it is alright in terms of taking decisions on budget issues – there is a figure that has been coordinated with the international lenders and it is achieved with the help of mathematical calculations.

While negative reinforcement takes place in other cases, namely, if we adopt something, we will be criticized again. It is better not to do anything, at least we are not criticized, Idelsons explains.

The experts reminds Citadele banka sale has been lasting for a while already, so have talks on whether it should be sold at all. Thus, hopefully, the privatization of the bank will be launched already this year.

I believe no one doubts the bank has to be sold, the question is when it will take place, Idelsons says, adding that he hardly sees any grounds the state should keep owning the asset.

He does not agree, though, that the delay reduces the value of the bank in the eyes of investors. The value is unlikely to drop, but neither will it skyrocket. A bank’s value depends on its profit and future outlook. I have always been honest about the fact I believe the state, not only in the banking sector, is not the best shareholder to grow this value, Idelsons says. Moreover, one of his own job duties includes acquiring new assets in Europe, including Citadele bank.

He is sure no state bank has ever been successful, so Citadele bank has to prove it is an exception.

AS Parex banka split according to «good out» model by creating Citadele banka was the right thing to do, Idelsons believes.

The simple truth is that «good out» model allowed keeping both the state capital and the subordinated one in the bad bank. This means if loss is too big and debt capital is used, besides state money, also capital someone else has invested will be drawn money from.

 


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  1. Ren says:

    “It is better not to do anything, at least we are not criticized, “—isn’t that giving up. Wonder, if he has the same attitude in business…

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