OREANDA-NEWS. On February 05, 2009 Parex banka submitted a proposal to its syndicated lenders with an offer to change the terms of their existing loan agreements, reported the press-centre of Parex banka.

The proposal anticipates that 70% of the total outstanding loan will be repaid during the first 12 month term beginning with a 20% payment in February, 2009. The remaining payment of 30% is due in January, 2012.

Nils Melngailis, Chairman of Parex banka’s Board emphasises: “In light of the global financial crisis and the difficult circumstances in Latvia in particular, we believe the proposal is fair. It is strategically important that the Bank resumes full operations as soon as possible, including resuming lending.”

The particular terms of the proposal involve a EUR 155 mln and cumulative interest rate payment on 18 February 2009, a EUR 387 mln payment in February 2010, with the remaining EUR 232,5 mln due in January 2012.

Parex banka has two outstanding syndicated loan agreements: the EUR 275 million credit agreement dated 21 February 2008 and EUR 500 million credit agreement dated 29 June 2007.