Inesis Feiferis

Before we decide to sell state owned banks, we should wait three or four years until market conjuncture changes, former Chairman of Mortgage Bank Inesis Feireris believes. He adds that the state has so far been unlucky with selling its owned banks, and there are objective reasons for that.

«First of all, it should be said that the situation on the market is far from being the best to allow such important deals to be made. Unless Latvia is bound by some obligations with international lenders – the International Monetary Fund (IMF) and the European Commission (EC) -, we should wait around three to four years, while the market conjuncture changes, and only then try to perform the bank selling deal», – the banker told Dienas Bizness newspaper.

According to him, it is worth remembering that, for example, in the case of Citadele Bank it was all about large financial investments from the state. «Therefore, in my opinion, it would be better if we waited until all investments, used to stabilize the financial sector, are fully recovered. And only then should it we assessed – whether or not it is necessary to sell some banks and what is the current market situation. In any case, an attempt to sell in a hurry without analyzing all aspects would not be a wise move», – Feiferis says.

«I know a few people who would be interested in having their own financial instruments in Latvia. What I mean – is the interest of those companies and banks which already work in Latvia or belong to Eastern businessmen. For example, the Russian millionaire Peter Aven does not hide that at some point he was ready to pay quite a large amount of money for Parex Bank. The interest of Eastern investors for Latvia and its financial sector did not go anywhere – Fereris notes. Still, having fully understood the bureaucratic obstacles in their way, obstacles they need to overcome in order to purchase state property, they decide to use other means to reach their goals – attempt to purchase some private financial institution, open a branch here etc. In other words – it is very complicated to work with the Latvian state.»

As it is well known, the previously supported plan of the government to restructure Parex Bank provides that Citadele Bank is to be sold until the end of 2014. However, the bank could be sold a lot sooner, if they receive a generous offer.

Ref: 102.109.109.1713