State to wait for payoff

RIGA - Parex bank’s subsidiary in Belarus, Parex Leasing, has been sold to Rietumu bank for an initial payment of just 56 lats (80 euros), while a second payment will be made on Feb. 10, 2012 for an as yet unknown sum, says a copy of the agreement in the possession of the daily Telegraf, reports Nozare.lv.

The second part of the deal will be calculated according to a specific formula based on the company’s income and expenditure over the next two years, including credit, tax and salary payments, the amounts of which are not specified in the agreement. However, the text does stipulate that the second payment cannot be for less than the initial payment of 56 lats.

The agreement also specifies that the buyer and seller will allocate eight loans to the leasing company in order to refinance its obligations to Parex bank. The sum of the loans is not specified in the agreement; however, according to the provisions, part of this money will immediately return to Parex.
As previously reported, Rietumu bank and Parex have concluded an agreement on the sale of the Parex bank subsidiary company Parex Leasing in Belarus.

“The acquisition of Parex Leasing, which is part of our long-term strategy of pursuing the expansion of Rietumu business activities, regional diversification and investing in lucrative assets, will open up new horizons for further dynamic growth of the bank and Rietumu Group and boost our leasing activity in Belarus,” said CEO and president of Rietumu bank Alexander Kalinovski.