It is a great mystery why nobody in Latvia (new managers at Parex Bank, auditors at Ernst & Young and PWC, raters at Moodys and Fitch, Latvian regulators, Latvian law enforcement, etc.) is able to prove that Parex Bank committed a material fraud crime when financing the sale of buses from Solaris of Poland to Riga Transportation since the proof only takes a few minutes using numbers from Parex Bank and Riga Transportation annual reports.
This bus sale included kickbacks, according to the United States Department of Justice.
This is an email written by John Christmas explaining the proof.
Most likely, this loan is now owned by Parex’s so-called “good bank” successor – Citadele Bank. Obviously, Riga Transportation has no legal obligation to repay this loan and therefore Citadele should announce a 100% loss.