Parex banka has made the second payment to its syndicated lenders, transferring the sum of EUR 310 million in accordance with its contractual obligations. As the situation at the bank has become more stable and liquidity has improved, the bank was able to cover most of the sum – EUR 165 million, while the State Treasury provided the remaining EUR 145 million as a term deposit.

Thus Parex banka’s overall obligations towards the Latvian state will decline, as the government guarantee had been issued for the entire amount of the syndicated loan.

In March 2009, Parex banka reached an agreement with the providers of the syndicated loan on changes in the repayment terms. According to the repayment schedule, the first payment or 30% of the total loan amount was made last spring, the second payment, equal to 40% of the amount, has been made today, while the remaining 30% will have to be paid in May 2011.

Since the previous tranche of the loan was paid, Parex banka has brought in the European Bank for Reconstruction and Development as an investor. The bank has also cut administrative costs by more than 40% and increased deposit volumes. New deposit products for both private individuals and legal entities facilitated the successful attraction of new customers in the 3rd quarter of 2009. The bank’s improved financial indicators allowed it to cover most part of the current loan repayment sum.

Unaudited 2009 operational results show that at the end of the year Parex banka’s loan portfolio was LVL 1.45 billion, deposit portfolio was LVL 1.54 billion, total assets stood at LVL 2.48 billion, and capital and reserves of the bank reached LVL 156.5 million. In 2009 the Bank has paid LVL 40.9 million in rewards to the State for its assistance, as well as to the Privatisation Agency as interest on its subordinated loan.

About Parex banka:

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
E-mail: pr@parex.lv