Bloomberg News

Norvik Banka Gets Capital Boost From Demjan, Regulator Says

October 24, 2012

Norvik Banka AS, Latvia’s seventh- biggest lender by deposits, is solvent and got a capital boost from a new investor, the country’s banking regulator said.

Sandor Demjan, a real-estate developer who is also the majority owner of Granit Bank Zrt. in Hungary, invested more than 5 million euros ($6.5 million) in Norvik’s capital and is ready to commit more funds, the regulator said in a statement late yesterday.

The regulator’s statement comes after Pietiek.com website reported yesterday that Norvik was told by the watchdog to raise additional capital within a month’s time. The regulator restricted Norvik’s lending in June and placed the bank under supervision, according to Pietiek.com.

Norvik said it increased capital by 11.6 million euros, citing an investment from a company owned by Demjan, according to the bank’s statement from late yesterday. The lender didn’t specify how much Demjan invested or whether capital also came from other sources.

-- Editors: Andrea Dudik, Pawel Kozlowski

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor for this story: Balazs Penz at bpenz@bloomberg.net


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