State aid for two Latvian banks approved

On 9 July, the EU executive authorised state aid granted by Latvia to Reverta (formerly AS Parex banka) and AS Citadele banka. The affair started in 2010, when the European Commission authorised a restructuring plan – amended in 2012 – which planned to split the former bank Parex into two banks: the cleansed Citadele bank (good bank) and the former Parex bank (bad bank), now known as Reverta. Latvia then granted additional aid to both banks, which the Commission was…