The European Bank for Reconstruction and Development is funded by 65 countries with a mission of fostering transparency and democracy in 30 countries. From 2009 to 2014, the EBRD was caught running a scam with the Latvian government to temporarily cover-up the disappearance of the assets of Parex Bank. The government claims that Parex collapsed because of the United States and Sweden, however the real recipients of the disappeared assets were likely Russian oligarchs and Latvian politicians.
From 2009 to 2013, the EBRD insisted that it really bought Parex shares and denied rumors that the privatisation was planned to be reversed by a secret guarantee (‘put option’) in 2014. When the Latvian government did reverse the privatisation in 2014, proving that the EBRD was lying and the privatisation was a fraud, then the EBRD became silent.
However now something amazing has happened. The EBRD had admitted on its own website that it is offering a fraud service! This webpage states that the EBRD will buy shares in a company if the seller guarantees to reverse the investment later! There is only one reason why a seller (for example a national government) would effectively pay the EBRD to temporarily claim to be owner of shares. This reason is fraud! Such transactions are completely illegal since they mislead creditors about the true value of the shares, which for a corrupt and looted government company is usually zero.
We wonder how many of the EBRD’s 30 countries currently have false financial statements because of this racket.
EBRD webpage:
http://www.ebrd.com/work-with-us/project-finance/equity/direct-equity.html%20
pdf in case the EBRD takes down the webpage:
