Reverta’s performance during the first nine months of 2012 has been in line with the approved Restructuring Plan and in some areas the company’s activities have exceeded the planned results.  During the report period Reverta has repaid EUR 52.6m to the Treasury.  Of that, EUR 21.1m was paid as interest on government bonds and EUR 31.5m was paid to redeem the government bonds.  According to the Restructuring Plan, repayment of the State Aid principal amount was due in the second half of 2012, but Reverta was already able to make its first payment of EUR 8.7m at the end of 2011.  At the same time, the first interest payment of EUR 2.1m was made, which, according to the Restructuring Plan, was not due until 2014. 

Mostly, the sums available to repay State Aid were recovered because of loan restructuring and sales of separate claim rights activities.  The amount of money recovered during the report period totalled EUR 85m.

Despite the signs of economic improvement as generally witnessed by the growth of GDP and improved international debt ratings during the period, the distressed assets market sector, with which we are dealing, still suffers from fragility and uncertainty.  The relatively inactive real estate market, increasing competition and difficulties hindering progress of the business projects of Reverta’s clients are having a significant effect on the State Aid recovery process and performance.   

Chairman of the Management Board of Reverta Christopher Gwilliam stressed: “More and more, Reverta’s work is disrupted by the inconsistencies that exist in the current laws that cover the company’s activities – repossession and management of real estates and exercising the rights of the creditor within the insolvency process. The heavy schedule of courts and sometimes ineffective judicial process are also obstacles to successful actions.  As a result of all this, not only the interests of mortgage creditors and banks are involved, but also those of Latvia’s taxpayers. Therefore we continue  actively to address State agencies, law enforcement institutions and the public to point out the importance of resolving these issues.” 

Reverta concluded the reporting period with a EUR 65.2m loss.  This loss comprises, firstly, of provisions for unsecured debts and, secondly, by the excess of interest expense over interest income.  In view of the specifics of the company’s assets it is unlikely that profit can be expected in the future.

Despite the rather low interest and purchasing capacity of potential buyers during the reporting period, the total real estate sales amount in September 2012 reached EUR 1.1m, thus exceeding all previous sale results. 


For further reference: 
On 12th November 2012 Reverta made another payment to the Treasury in the sum of EUR 25.5m, ahead of schedule.  Of that, EUR 18.1m was paid to redeem the government bonds and EUR 7.4m was paid as interest.  Reverta plans to repay approximately EUR 11m more by the end of this year.

Overall, starting from 1st August 2010 till 31st October 2012, Reverta has recovered EUR 413m.


For additional infomation:
Marita Ozolina
Head of Communications and Marketing Department
Phone: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv