OREANDA-NEWS.   In 2013, EUR 57.3m has been paid to the State Treasury in repayment of State Aid. This sum comprised the principal in the amount of EUR 32.2m and the interest in the amount of EUR 25.1m. The total of the cash funds recovered through the management of the loan portfolio and the realisation of the assets of Reverta was EUR 86.9m.

Overall, since 01 August 2010 to the end of 2013, Reverta has paid EUR 157.8m to the Treasury in repayment of State Aid to Parex banka. In addition the Syndicated Loan of Parex banka (which was State guaranteed) of EUR 234m was repaid in term and in full together with interest of EUR 10.6m. The repayment to the Treasury has started a year earlier and has been made in a larger amount than envisaged in the Restructuring Plan.

“Since the beginning of Parex banka/Reverta on 01 August 2010, we have recovered more than half a billion euros. The result achieved clearly shows the appropriateness of our chosen strategy. The management of the remaining loans becomes more and more complicated and time-consuming because the comparatively more ordinary loans have already been realised and the remaining ones are characterised by lengthy court proceedings, distinct repayment difficulties and counteractions of some defaulting borrowers. Nevertheless, we expect to be able to make repayments to the Treasury in 2014 at least in the amounts of the year 2013,” says the Chairperson of the Management Board of Reverta Solvita Deglava.

With the income level of the general population gradually stabilising and even starting to grow, the well-considered sales strategy has allowed for recovery of EUR 37.8m from the real estate portfolio, and this is the best real estate sales performance since the beginning of Parex banka/Reverta on 01 August 2010.

The reporting period ended with a EUR 136,4 m loss, which reflects the underlying nature of the Company and the approved Budget 2013. As in years before, the loss mostly comprises provisions for impairment of the loan portfolio and net interest expense.

“There are also significant differences observed in the historical value of the collaterals pledged in favour of Parex banka and their current and actual market value – quite often the value has decreased even by 90 per cent,” points out Solvita Deglava.

A significant amount of interest – an average of EUR 4.3m per year – is paid on the sub-debts (the subordinated capital). The largest part of these payments is made to persons associated with the former Parex banka.

At the end of 2013, the total assets of Reverta were EUR 339.5m. As a result of a successful loan restructuring and recovery, the net balance sheet value of the loan portfolio has decreased to EUR 276,1 m.

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Reverta is a distressed assets manager, the main competencies of which are loan restructuring, debt recovery and real estate management.

As of today, the Privatisation Agency of Latvia holds 84.15% of Reverta’s shares, the European Bank for Reconstruction and Development – 12.74% of shares, and the rest – 3.11% of shares belong to other shareholders.