OREANDA-NEWS. July 21, 2011. Many wish to purchase assets of AS "Parex banka" at depressive prices but we did not, do not and will not allow this to happen, in an interview with Nozare.lv business portal stated Jurijs Adamovics, Member of the Bank's Board of Directors, reported the press-centre of Parex Banka.

He categorically dismissed admonishments expressed toward the Bank's Management claiming that the latter pick buyers and sell assets selectively at prices determined by the Bank's employees. Mr. Adamovics emphasized that there are no grounds for such talks.

He pointed that each transaction is based on an analysis conducted by the Bank as well as an independent external assessment. The Board Member reminded that the activity of Parex banka is not only analysed by the enterprise itself, its activity is also analysed by the Finance and Capital Market Commission (FKTK), Ministry of Finance and Privatization Agency.

"We have mutually agreed on the principles of work in order for the funds invested in bailing out the bank to be recovered to the maximum extent possible. We perceive all speculations publicly expressed about the quasi dirty deals as defamation," said Member of Parex banka's Board of Directors who pointed out that there are also dishonest people among the Bank's clients who are willing to do everything in order to take vengeance and defame the Bank's employees.

More than 100 investors have expressed their interest in purchasing separate loans of Parex banka but, as Mr. Adamovics assured, the Bank does not have the mandate to sell whole loan portfolios and it deals only with development of assets which might include selling separate loans to investors. The Bank's restructuring plan provides for this and such an approach was repeatedly approved by the government when resolving on selling strategies for AS "Parex banka" and AS "Citadele banka".

Mr. Adamovics explained that investors are interested in particular expositions which he would not call portfolios. Debt recovery and the subsequent auction of collaterals or selling rights to demand is carried out only in cases when the Bank fails to restructure the loan by way of negotiations. Only when a client shows no "vital signs", avoids or performs deliberate acts of reducing assets' value by him/herself or by the help of third parties, Parex banka is left with nothing else but an option to initiate proceedings and recover debt.

As announced previously, up to now Parex banka, which was split up last year and which presently holds only problematic assets, has recovered 800 real estate objects from its debtors. Within one year this amount may become twice as large however this depends on how actively third parties will participate in auctions.

Approximately 5’000 clients remained in Parex banka after split-up in August 2010. 60% of client cases are mortgage loans issued to retail customers. Presently, approximately 2'400 cases are in recovery process and 1'050 cases have been litigated. The remained of cases are being actively prepared for recovery process, Indicated Parex banka's Member of the Board of Directors.

Parex banka’s portfolio upon split-up in August 2010 was 830 million Lats. Two thirds were Baltic assets and one third was assets in CIS countries, mostly Russia and Ukraine.

In accordance with the information available on the bank’s website, 81.83% of Parex banka’s shares are owned by Privatization Agency, 14.61% by the EBRD and 3.56% are owned by minority shareholders.

Full text of interview with J. Adamovics is available in section “Opinions, Interviews” section of Nozare.lv portal.