UPDATED: Bloomberg picks up story!

UPDATE – 26 AUGUST 2014 ON BFW (BLOOMBERG SUBSCRIBER SERVICE):

Dutch Lawmaker Asks Eurostat to Review Latvian Accounts
2014-08-26 11:29:53.256 GMT

By Corina Ruhe
Aug. 26 (Bloomberg) — Financial statements for Latvia are non-compliant with Eurostat standards, Pieter Omtzigt, Dutch member of parliament for the Christian Democrats, says in letter to Eurostat.
* Says Lavia “sold” shrs of nationalized Parex Bank to
European Bank for Reconstruction and Development in 2009
with secret “put option”, requiring Latvia to buy back the
shrs in future, guaranteeing unknown profit to EBRD at
expense of Latvian taxpayers
* Says money for Parex was only a loan effectively
* Says put option was major breach of European standards
* Says Eurostat obliged to instruct Latvia to restate
financial statements back to 2009; to include amount of put
option as debt
* NOTE: Latvia plans to sell Citadele this year
* NOTE: Dijsselbloem Says EBRD Has Put Option on Citadele,
Reverta Stake

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

–With assistance from Aaron Eglitis in Riga.

To contact the reporter on this story:
Corina Ruhe in Amsterdam at +31-20-589-8526 or [email protected] To contact the editors responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
[email protected]

ORIGINAL POST – 10 JULY 2014:

We have been sending emails to Bloomberg for years that the EBRD/Latvia/Parex bailout was fraudulent because of a secret put option, and finally they have picked up the story!  This is one of the largest frauds of the European Financial Crisis, and is even larger if incoming rumors are true that the EBRD has committed similar frauds in other countries.

http://www.businessweek.com/news/2014-07-10/dijsselbloem-says-ebrd-has-put-option-on-citadele-reverta-stake

 

European Commission investigation!

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.

http://europa.eu/rapid/press-release_IP-14-454_en.htm

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.