RIGA, Nov 8 (Reuters) - The Latvian government said on Saturday it was taking over the country's second largest bank as the global financial crisis hit the small Baltic state, where economic growth has also sharply fallen.
It said in a statement it acted to 'ensure a stable financial system in Latvia and the work of Parex bank'. Parex is the largest locally-owned bank in a sector where Nordic banks have made inroads in recent years.
Prime Minister Ivars Godmanis told reporters after a cabinet meeting the decision to take over Parex was in line with moves by other European Union countries to support their banks.
Godmanis also said he saw no need to ask the International Monetary Fund or the EU for help.
(Reporting by Patrick Lannin; editing by Andrew Dobbie) Keywords: LATVIA ECONOMY/ (Riga newsroom, patrick.lannin@reuters.com, patrick.lannin.reuters.com@reuters.net, +371 29 269 191) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
It said in a statement it acted to 'ensure a stable financial system in Latvia and the work of Parex bank'. Parex is the largest locally-owned bank in a sector where Nordic banks have made inroads in recent years.
Prime Minister Ivars Godmanis told reporters after a cabinet meeting the decision to take over Parex was in line with moves by other European Union countries to support their banks.
Godmanis also said he saw no need to ask the International Monetary Fund or the EU for help.
(Reporting by Patrick Lannin; editing by Andrew Dobbie) Keywords: LATVIA ECONOMY/ (Riga newsroom, patrick.lannin@reuters.com, patrick.lannin.reuters.com@reuters.net, +371 29 269 191) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.