RIGA - Parex Bank signed a record-breaking syndicated loan, borrowing 188.5 million euros from a group of 32 banks from 14 different countries.
The interest rate is EURIBOR plus 0.6 percent, and the maturity is one year.
Viktor Krasovitsky, bank chairman and one of two controlling owners, told reporters that the bank was planning to use the money to boost its share in the local credit market as well as to develop the bank's international leasing operations.
Vice president and head of investment banking, Gene Zolotarev, who is also controlling owner of Baltic News, the company that publishes The Baltic Times, said that the funds would be used to credit medium-sized businesses and to issue loans to individuals.
At the same time Krasovitsky pointed out that Parex was circumspect in extending loans and therefore was the third largest bank in Latvia in terms of lending. "We are very cautious toward the credit market," he said.
Parex Bank is the second largest bank in Latvia in terms of assets.