Former Parex owners ordered to pay back millions

The Laatvian Supreme Court's Chamber of Civil Cases decided October 13 that former Parex Banka owners and board members Valerijs Kargins and Viktors Krasovickis will have to pay the joint-stock company Reverta a total of €4,284,792 in compensation.

The former bankers will also have to cover the cost of litigation, a further of €230,550.

Reverta's original claim against Kargins and Krasovickis was more than €81,180,583.

As previously reported, the Riga Regional Court at the end of 2012 ruled that the two defendants were to pay Reverta around €5 million.

Reverta had orginally wanted the two ex-bankers to pay a total of €88 million after they signed 14 highly irregular deposit and loan agreements from 1995 to 2008, which were damaging to Parex Banka.

As reported, the state took over Kargins and Krasovickis' shares in Parex Banka on December 5, 2008 for a token amount when the formerly high-flying bank collapsed.

Parex Banka was subsequently split into asset recovery company Reverta and a new bank, Citadele, which was sold to a group of US-led investors.

Parex's had been the second-largest bank in Latvia and its fall dragged the whole country to the edge of bankruptcy, necessitating a joint IMF-EU bailout and the introduction of swingeing austerity measures.

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