Former Parex owners told to pay up

The two former owners of Parex bank - the notorious financial institution that dragged Latvia to the brink of national bankruptcy - were ordered by a court Friday to pay more than €3m to the Reverta agency that has been tasked with clawing back money from the bank's collapse.

Valerijs Kargins and Viktors Krasovickis were once the poster boys of Latvia's economic boom of the early 2000 - but it all went horribly wrong in 2008 when the bank crashed and the state had to step in.

Such was the size of Parex's implosion Latvia had to take an €8.5-billion loan from the IMF, European Union and World Bank to pay its bills, which in turn led to massive austerity measures whose effects can still be felt today.

The two former princes of Parex had refused Reverta's attempts to recover debts, but on Friday the Court of Justice ruled they should stump up to the tune of €2.4 million in Kargins' case and a mere €0.7 million in Krasovitskis'.

However, this is far from the end of efforts to recover money from the disgraced pair with numerous other court actions pending for millions more euros.

Nevertheless, any monies recovered are likely to be a drop in the ocean compared to more than a billion euros the Latvian government is believed to have sunk into Parex's bail-out.

 

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