European  Bank  or  Reconstruction  and  Development  (EBRD) and Danish

Investment Fund for Central and Eastern Europe (IO Fund) have signed an

agreement to become shareholders of Latvian Insurance JSC "Balta".

At present Danish insurance company "Codan" is finishing up preliminary

work  before overtaking JSC "Balta" and has made an offer to EBRD an IO

Fund  to  make  a financial investment in JSC "Balta" were "Codan" owns

more than 51% of shares.

"Codan" is offering EBRD to acquire 24% of JSC "Balta" shares and to IO

Fund   to   acquire  17%.  This  step  is  a  continuation  of  further

co-operation  that  has begun in Lithuania and was discussed previously

before sale of JSC "Balta" shares.

"  We  have  done  the  same  thing  in Lithuania, we have invited both

institutions  to  make  an  investment in JSC "Balta", were "Codan" has

majority  interest. EBRD as well as IO Fund has extensive experience in

development  of entrepreneurship in Central and Eastern Europe. We have

worked  with  those institutions in joint shareholdings for more than a

year   in  Lithuanian  insurance  company  "Lietuvos  Draudimas".  This

co-operation  has  had a positive effect and has proved that variety of

knowledge  improves  profit and this will have a positive effect on JSC

"Balta" as well" said Paul Mortensen, CEO of "Codan".

"Codan"  emphasised  lasting  impact that EBRD and IO Fund will have on

Latvian market especially in financial sector.

Purchase  of  shares  will  take place following authorisation of local

Supervisory  Bodies.  This  is  expected  in  very near future and will

provide completion of this deal.