Brussels, 15/09/2010 (Agence Europe) - On Wednesday 15 September, the European Commission approved a thorough restructuring of Parex which, before the crisis, was Latvia's second largest bank. Under the plan submitted by the Latvian authorities, the core assets and operations of Parex will be transferred into a newly established bank called Citadele, with the remainder of Parex turned into a resolution bank. The Commission is satisfied that the restructuring plan will ensure the long-term viability of Citadele Banka, while allowing an orderly realisation of the assets remaining in Parex. The plan also includes an adequate contribution of the legacy capital holders to the restructuring costs as well as safeguards to limit the distortive effects of the received aid, the Commission says. Commission Vice-President in charge of competition policy Joaquín Almunia said that the plan “is a well-balanced package that limits the distortions of competition, ensures an adequate contribution of the shareholders and holders of subordinated debt to the restructuring costs and enables the emergence of a new, viable bank”. O.L./transl.rt)