Parex banka is giving up its credit institution status and becoming a professional distressed asset manager. The sole and one of the leading Eastern and Central European managers of distressed assets will further on operate under a new brand – Reverta.

Parex banka’s reorganization into an asset management company will enable to save substantial costs related with maintenance of a credit institution license as well as reduce other administrative costs. Calculations suggest that savings will reach 0.5 million lats a year. As a result of status change Parex will no longer be subjected to regulations applicable to the activity of credit institutions. Thus the state will not have to increase Parex banka’s capital as provided in the bank’s restructuring plan. Parex banka’s change of status will enable the state to save more than 160 million lats.

“Change of status and brand name, along with the acquired experience and unique know-how, will enable to maintain efficient and professional focus on the company’s main areas of activity. The brand name was acquired from Latin word “revertō” which means “return” in the broadest sense of the word. We have chosen returning as the main symbol of the new brand for a twofold reason – returning back to the core purposes of activity or returning the state its investments,” explains Christopher Gwilliam, Chairman of Parex banka’s Board.                                                   

By giving up its credit institution status, Parex banka has made an unprecedented step in the Baltic financial sector. Starting from 1 August 2010 Parex banka no longer provides services which are characteristic to a commercial bank. Therefore giving up of a credit institution license will enable to work professionally with the status that corresponds with the company’s core activity. The new status allows the company to optimize and improve its activity, and focus all of its know-how and energy on the main fields of business: efficient loan restructuring, debt recovery and management of overtaken real estate.

The new name of Parex banka has to be approved at the Shareholders Meeting on 27 April 2012.