OREANDA-NEWS. December 19, 2011. Joint Stock Company Parex banka has repaid the principal of deposits made by the State in the amount of 6 million Lats to the Ministry of Finance before deadline. Presently the State has recovered 70 million Lats from Parex banka and received 98 million Lats in interest payments for using aid granted by the State, reported the press-centre of Parex banka.

Additionally Parex banka has carried out repayment of State guaranteed syndicated loan in the amount of 164 Lats, thus releasing the State budget and tax payers from substantial loan liabilities.

Chairman of Parex banka’s Board comments: “I would like to remind that only problematic loans with serious repayment problems are left in the bank’s balance. This means that our everyday work is related with clients who either are incapable of performing their liabilities toward the bank or who do not wish to cooperate and settle their debt liabilities. Also, it is no secret that we frequently encounter with significant counter activity in Latvia and abroad because the amount of several clients’ liabilities is millions of Lats. For this reason I can claim that every Lat recovered by our team is the result of hard work and I have reasonable grounds to be satisfied with our accomplishments.”

Since 1 August 2010 Parex banka has recovered over 200 million Lats from restructuring problematic assets. The largest part of the recovered funds was channelled to repayment of the syndicated loan worth 164 million. 
 
Additional information: 
Parex banka’s activity is focused in three main directions – loan restructuring, debt recovery and real estate management.  The proportion of real estate in Parex banka’s agenda tends to increase – mostly this is alienation, taking over and management of property. In order to acquire the necessary funds for repayment of investments made by the State Parex banka plans to sell real estate at the most beneficial price as the situation in the real estate market improves. Parex banka’s real estate portfolio contained over 800 objects as of 30 September 2011.