ALMOST A HALF OF THE RESOURCES NEEDED FOR REPAYMENT OF THE SYNDICATED LOAN HAS BEEN ACCUMULATED

Despite the weak economic recovery signs detected in Latvia and the world, the joint stock company Parex banka has managed to regain 60 million lats by successful loan restructuring and sale of securities in the first five months of its activity, testifies the financial results of the company. Hence Parex banka has accumulated approximately a half of the resources needed for the syndicated loan repayment. In general the performance of the Bank complies with the estimate and the Bank’s restructuring plan approved by the Cabinet of Ministers and the European Commission.

Christopher Gwilliam, the Chairman of the Executive Board of Parex banka says: “I am really happy because in spite of the adverse external circumstances – instable economic growth and still low prices of real estates and low market activity – by flexible and advised tactics we have reached considerable results. We are aware that in order to reach the goals set for Parex banka we have to use all the available resources – knowledge, skills and know-how.”

While recovering the state investments, more and more often Parex banka encounters with persistent desire of Latvians and foreigners to acquire assets of the Bank for noticeably reduced value. In such cases Parex banka acts in order to obtain information about the actual interests and honesty of the potential partners in due time.

“In such events, which are not rare, it is essential to inform the law enforcement authorities and we, of course, do it,” says Mr Gwilliam.

Parex banka regularly faces situations when some clients and stake holders make deliberate efforts to reduce the value of the assets pledged to the Bank, as well as to conceal their actual financial position. In several cases Parex banka has already launched a successful cooperation with Latvian law enforcement authorities in order to eliminate threats to the Bank and consequently to the state and the society.

Since August 1, 2010 when Parex banka started its operations as a resolution bank, at the same time discontinuing rendering such typical banking services as account and deposit services, loan issuing and others, the main objective of Parex banka is maximal recovery of the state investments. For meeting the said goals the Bank focuses its activities to effective loan restructuring, debt recovery, as well as management of the real estates taken over.

Additional information:
Marita Ozoliņa-Tumanovska
Head of Communications and Marketing
Tel.+371  67779142 or 29287169
E-mail: Marita.Ozolina@parex.lv