OREANDA-NEWS. January 11, 2013. Reverta has fully met its goal of 2012 by paying the planned EUR 11.5m to the Treasury at the end of the year. 

Overall, according to the Restructuring Plan, Reverta has repaid to the Treasury EUR 89.7m during 2012.  Of which, EUR 28.5m was interest payment on the State Aid to Parex banka, and EUR 61.2m was repayment of the loan principal. Overall, EUR 100.5m has been repaid to the Treasury since 1st August 2010, of which EUR 30.7 m was interest and EUR 69.8m was the loan principal.  In addition to that, in 2011 Reverta also repaid the State guaranteed syndicated loan in the amount of EUR234m.   

„Feeling gratified and proud of what we have accomplished, still we are cautious in our future prognoses.  The scope of external factors affecting the results of our performance is quite large.  The most significant ones are the overall economic situation that influences not only the activity of the real estate market, the price range and the purchasing capacity of people, but also commercial activities of our borrowers and their ability to fulfil their loan liabilities; changes made to the legislation of Latvia, elimination process of certain legislative insufficiencies and the slowness of legal procedures; and also the attitude of the Latvian tax payers towards fraudulent actions of dishonest debtors – without the support of the public carrying out of such schemes would be much more difficult”, says Christopher Gwilliam, Chairman of the Management Board of Reverta.   

„Though there are some signs clearly showing a gradual recovering of Latvia from the crisis, which allowed us to significantly increase the revenue from sales of real estates at the end of the last year.  Another positive change is the increasing understanding of the fictitious lease agreements problem by law enforcement institutions, which are giving a serious consideration to such cases and cancelling the fraudulent agreements.  In several cases even criminal actions were started,” stresses Christopher Gwilliam.

As already announced before, according to the Restructuring Plan, Reverta had to start repayment of the principal amount of the State Aid in the second half of 2012, but the first payment to the Treasury was made sooner – already at the end of 2011.  At the same time, the first interest payment also was made, which was considerably ahead of the Restructuring Plan schedule envisaging that the start date would be in 2014 only.

Additional information:
Reverta is the largest distressed assets manager in Baltic countries.  The main competencies of the company are loan restructuring, debt recovery and real estate management.  Starting from 1st August 2010 till 31st October 2012, Reverta has recovered EUR 419m from development and sales of distressed assets.
 
To learn more about Reverta, please visit the company’s web page: www.reverta.lv.