Industra Bank to take over most PrivatBank assets in Latvia

Industra Bank and PrivatBank have concluded an agreement, which provides for the transfer of PritvatBank's customers’ servicing, plus most of its assets and liabilities to Industra Bank, the bank announced July 8.

An application has been submitted to the Financial and Capital Market Commission (FKTK) for permission to close the deal.

"The business transfer agreement provides that Industra Bank will take over customer relations from PrivatBank, including the management of accounts of private individuals and legal entities, credit and leasing portfolios, deposits, as well as securities owned by the bank," Industra said.

Raivis Kakānis, Chairman of the Board of Industra Bank, said: "In the medium term, we aim to become the bank of the first choice for Latvian entrepreneurs and therefore we are purposefully increasing the scale of the bank's operations." 

This transaction is an example of the consolidation of the Latvian financial market, which follows several years of changes in the industry.”

“Our main task for the coming months will be the integration of PrivatBank's operations with Industra Bank and addressing PrivatBank's customers to proactively tell about the advantages we offer. At this point, customers do not need to do anything," said Kakānis.

 All concluded agreements that will be transferred to Industra Bank, including deposit agreements and credit agreements, will remain valid until the end of their maturity in accordance with their current conditions.

Within the transaction, Industra Bank will take over approximately 5,900 clients from PrivatBank, 400 of them legal persons and 5,500 private individuals. The amount of loans to be transferred in the transaction is approximately twenty-five million euros, while the deposit portfolio exceeds fifty million euros.

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