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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.
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