RIGA — The European Bank of Reconstruction and Development will take a 25 percent stake in the new Citadele bank, which is due to start trading on Monday.

Citadele, Latvia’s newest bank, was started by the government as the good half of the nationalized Parex Bank. Parex was nationalized in 2008 amid fears it would collapse.

The Saeima approved the one quarter stake in the bank for the EBRD on Thursday.

“Today we decided to further cooperate with the European Bank of Reconstruction and Development in the new Citadele Bank in which the EBRD will have 25 percent,” transport minister Kaspars Gerhards said in a statement to the press.

The EBRD owned 19.7 percent of Parex in its former state before it was split up.

Citadele now has 66 percent of the old Parex’s capital and 50 percent of its loan portfolio. The remaining loan portfolio is being carved up and sold off as toxic debt.

Citadele this week also had its share capital increased by 99 million lats (€141 million).

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