The European Commission has opened an investigation into state aid to Parex Bank and successors Reverta and Citadele Bank. It’s about time somebody investigated, since clear evidence of massive frauds has been openly available online for years.
The EC release listed specific ways in which Latvian government loans to Parex were noncompliant. They were larger than allowed, and also the government extended the maturities to longer times than allowed. Presumably, the government did this because the loans won’t be paid back however the government wants to delay until after the next election before taxpayers find out how much money was lost in the black hole of Parex.
Strangely, the EC release did not mention that the sale of Parex stock from Latvia to the EBRD was a fraud (a fake reversible purchase designed to fool the public) since that fraud is even worse than the others.
We at LawlessLatvia have already sent information to the EC investigators: Parex was a fraud and the Parex bailout was a fraud and the purpose of the bailout was to protect corrupt government employees and oligarchs.
Hopefully the EC will investigate with an objective of uncovering and exposing the truth. When the EBRD conducted “due diligence” on Parex in 2009, it had the opposite objective – tricking the public that Parex was not a fraud even though it was.
The EC release was not censored in the Latvian press. However, we wonder if the press knew about the noncompliance of the bailout loans already and covered this up for as long as they could.