Teksts
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Parex Banka’s Accrued Reserves With the Bank of Latvia Will Be
Used for Repayment of Syndicated Loan
Parex banka has accumulated nearly all funds necessary for
repayment of syndicated loan, among them drawing in of Parex
banka’s accrued reserves with the Bank of Latvia. Further holding
of these funds in the mandatory reserves account has neither
economic nor logical basis. In accordance with European
Commission’s approved Restructuring Plan for Parex banka and the
goals contained therein, repayment of syndicated loan without State
aid is determined as priority of Parex banka’s present activity.
The amount of loan is 164 million Lats, repayment term - 5 May
2011.
“The essence of mandatory reserves is limitation of a credit
institution's risk transactions however Parex banka has not been
providing classical services characteristic to commercial banks
since 1 August 2010 already. We are not a participant of the money
market; restrictions posed by the European Commission which
prohibit attraction of deposits and issuing of loans are binding to
Parex banka,” points out Christopher Gwilliam, Chairman of Parex
banka’s Board of Directors.
As announced previously, aided by the State, on 1 August 2010 Parex
banka became a unique financial institution, i.e. manager of
specific problematic assets, in Latvia and the Baltic States and
its sole aim is to recover State investments to the maximum extent
possible. Presently Parex banka’s activity is focused on
restructuring of loans, recovery of debt and management of
overtaken assets.
“According to my international experience in bank restructuring
which is more than 20 years long, I can say with full
responsibility that holding Parex banka’s owned funds with the Bank
of Latvia does not comply with the purpose of keeping mandatory
reserves. Our mandatory reserves are calculated and accumulated
largely on the basis of the bank’s liabilities toward the
investments made by the Ministry of Finance and repayment of
syndicated loan therefore the use of these funds for repaying the
loan is a logical step,” emphasizes Christopher Gwilliam.
Such a solution is permitted in the existing legislation and for
this reason Parex banka has turned to the Financial and Capital
Market Commission and the Bank of Latvia with a request to release
it from performance of mandatory reserves requirements and to
channel the funds in the amount of 26 million Lats accrued with the
Bank of Latvia for repayment of the syndicated loan.
Additional information:
Marita Ozoliņa-Tumanovska
Head of Communications and Marketing Department
Tel. 67779142 or 29287169
e-mail: Marita.Ozolina@parex.lv
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