OREANDA-NEWS. Since 1 August 2010 joint stock company “Reverta” has paid EUR 323,5 million into the State Treasury, with the last payment in May of this year totalling EUR 5 million. Together with other payments since 2010 “Reverta” has already paid the state more than half a billion euros.

Solvita Deglava, Chairperson of the Management Board at “Reverta”, says: “Over the course of its operation “Reverta” has paid into the State Treasury a significant amount of financing that can be channelled to such areas as health care, education or road maintenance. Considering the politico-economic situation and challenges that the sector faces our specialists have achieved nearly the maximum possible results, but we remain realistic. We have done everything in our power to minimise potential losses for the state; the assets we received from the previous shareholders after the splitting of “Parex” were of low quality and changes in the economic situation have also had an effect, therefore we accept that losses will have to be acknowledged.”

Due to the fact that “Reverta” recovers loans not only in the Baltic States, but also in Russia and Ukraine, the Russia-Ukraine crisis, which began in 2014, and the subsequently weakened economies of both states continues to have a negative impact on “Reverta’s” performance indicators. At the moment loan recovery is becoming increasingly complicated and the amount recovered in CIS countries in the first quarter of this year has fallen. However, recent improvements in the judicial system in Latvia providing support in problematic court proceedings have had a positive effect.

Over all from 1 August 2010 till 31 December 2014 the state has received over half a billion euros from “Reverta”. This amount is constituted by payments of EUR 323,5 million to the State Treasury, as well as repayment of the syndicated loan guaranteed by the state together with interest totalling EUR 244,6 million. Furthermore, approximately EUR 15 million have been paid to the state in various taxes and fees. Since 1 August 2010 EUR 17,2 million have been paid in subordinated liabilities.

Additional information:

Reverta is the largest distressed assets manager in the Baltic countries. The main competencies of the Company are loan restructuring, debt recovery and real estate management. As of 1 August 2010 Reverta has recovered more than EUR 614.9m from development and sales of distressed assets.