Krediidipank to close Latvian branch
Krediidipank announced on Friday that it was closing its Latvian branch. Since the bank had new owners, and in the future would form a new bank with retailer Coop and concentrate on the Estonian market, the Latvian business no longer fit the company’s strategy, CEO Margus Rink said.
Krediidipank’s Latvian branch will continue its operations until June 14, but won’t accept any new customers and assets starting today Mar. 31, the bank announced. All its Latvian clients will get their assets paid out. The change will not affect Krediidipank’s Estonian customers.
The bank has some 1,200 clients in Latvia, all of which have until the end of May to take their business to another bank. Its 17 employees will see their contracts terminated no later than the end of this year.
According to CEO Margus Rink, the reason for the step is a reorganization of Krediidipank’s business. The bank has had new owners since January, and they wanted it to concentrate on the Estonian market, Rink added.
As became clear earlier this year, Krediidipank and supermarket chain Coop are planning to create a bank that would offer its customers services connected to Coop’s Estonian network, thereby bringing everyday banking services back to the country’s more remote areas as well.
The Latvian branch did not fit in with this new strategy, hence the decision to close it, Rink said.
Editor: Dario Cavegn
