OREANDA-NEWS  On 02 March was announced, that Parex banka and its syndicated lenders reached an agreement to extend the negotiation process between them until 19 March 2009, in order to restructure the loans and changes in the repayment terms in accordance with the proposal submitted by the Bank.

Nils Melngailis, Chairman of Parex banka’s Management Board, who is leading the negotiation process on behalf of the Bank and the Latvian State, commented: “This is a complex process which requires the preparation of legal documentation by the Bank and its syndicated lenders, comprising 60 international financial institutions. In this situation the extension of negotiations reflects the lenders’ wish to reach an agreement with Parex banka on the proposed changes in repayment terms and conditions. We will continue to work on the covenants of the common agreement up to 19 March.”

As previously announced Parex banka submitted a proposal to its syndicated lenders with an offer to change the terms of their existing loan agreements on 5 February 2009. The particular terms of the proposal involve a 20% or EUR 155 mln cumulative interest payment by the end of March 2009, a EUR 387 mln payment in February 2010 and the remaining EUR 232.5 mln payment in January 2012.

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