Since the state took over the Parex banka, much work has been done to optimise the operating costs. Administrative costs were cut substantially in 2009 – personnel costs were down by 30%, travel expenditures – by 93%, advertising, marketing and representation costs – by 85%, transport costs – by 68%, office supply costs – by 61%, and communications costs – by 28%. Total savings as compared to 2008 reached LVL 32 million.

 

The Parex banka’s loan portfolio at year’s end reached LVL 1.45 billion, and there were LVL 1.54 billion in deposits. Total assets amounted to LVL 2.48 billion, while the capital and reserves at the end of the year was LVL 156.5 million.

 

During 2009, the Parex banka has paid LVL 40.9 million in interest to the State Treasury for its deposits and to the Privatisation Agency for its subordinated loan.

 

On February 15, 2010, the Parex Bank will repay the next tranche of its syndicated loan. The payment will amount to LVL 218 million (EUR 310 million). The bank itself will contribute LVL 116 million of the amount, while the State Treasury will provide LVL 102 million by placing deposit with the bank.

 

 

Founded in 1992, Parex banka currently employs some 1 900 people at branches all over Latvia and offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka has signed up to the European Code of Conduct on housing loans.

 

For more information please contact:

Inga Saleniece

Corporate Communications Department

Telephone: +371 67778870 or +371 26564629