OREANDA-NEWS. September 10, 2013. Semi-annual performance data of 2013 compiled by Joint-Stock Company Reverta show that recovery of economy brings an ever increasing proportion of total recoveries from disposal of real estate portfolio objects, which has reached historically highest mark during the reporting period – EUR 14m.

At the same time, Reverta is still forced to fight for recovery of particularly complicated debts in Russia and to pay interest on subordinated loans to the former owners of Parex banka and their family members – these payments amounted to EUR 2.3m during the first half of the Year 2013.

Semi-annual performance data of 2013 compiled by Joint-Stock Company Reverta once again show ability of the Company to work in line with aims and tasks set out and approved by the Restructuring Plan. The only measure of Company’s performance is the amount of funds recovered for the State budget, and, in accordance with the Restructuring Plan, no profit can be expected in future.

Although the distressed loans recovery process becomes more complicated because of various circumstances, Reverta has recovered EUR 35.8m during the reporting period. Like in previous periods, funds necessary to repay the State Aid were mostly recovered from restructured loans. Whereas income from sales of real estate properties during the reporting period has reached EUR 14m (compared to EUR 3m at the same period last year). 

Christopher Gwilliam, Chairman of the Management Board of Reverta says: “The decision to form Reverta’s own team of real estate sales specialists has fully proved itself to be right, and it has allowed for a significant return from the real estate portfolio. Recovery of economy has also had a positive impact on our performance. But, in spite of the positive signals we see, our largest challenges are those of recovering bad debts in Russia, as well as our complicated obligations towards former owners of Parex banka and their family members, which are causing losses not only to Reverta but also the State.”

Reverta’s distressed loans portfolio, EUR 387.8m as of 30 June 2013, consists of Baltic and CIS debts. Approximately 60% of all debts are those of Latvian origin. A particularly complicated matter is that of recovering some debts of notable amount in Russia, for example, in the matter of Severorgsintez, where the amount of outstanding liabilities is USD 108m, and Reverta has encountered a grave discrimination of foreign investors and violation of laws, which causes heavy losses to Reverta, the total amount of which cannot be established yet.

Since 01 August 2010, Reverta has made payments of EUR 127.6m to the Treasury and has paid State guaranteed syndicated loan in the amount of EUR 234m, as well as EUR 10.6m interest on the above loan.