RIGA - This month, Reverta, the bank set up to work out and recover the so-called ‘bad’ debt from the ashes of failed Parex bank, following the terms of the approved Restructuring Plan, has repaid 14.1 million euros to Latvia’s State Treasury, reports Nozare.lv.
A considerable proportion of this sum, 6.1 million euros, was paid as interest on the state aid to Parex bank, whereas 8 million euros was paid to cover the principal debt.
Overall, since Aug. 1, 2010, Reverta has transferred 127.6 million euros to the State Treasury, has repaid the state guaranteed syndicated loan in the amount of 234 million euros, and has paid 10.6 million euros in interest on the said loan.
Similarly to previous periods, most of funds necessary to repay the state aid were recovered from restructured loans. Due to growing activity in the real estate market, an increasing proportion of revenue is made from disposal of real estate portfolio properites.
“It is too early to speak of rapid or total recovery of Latvia’s economy, but there are some signs of positive trends that we observe in our work: with micro- and macro-economics improving slowly, our earnings from the sale of real estate properties are growing considerably. The attitude of borrowers is gradually starting to change – some of them have understood that it is of more benefit to cooperate and look for mutually acceptable solutions, avoiding any additional financial and reputation losses this way. But there are others who, unfortunately, continue active counteractions by all legal and illegal means, thus wasting their own and our resources uselessly,” says Reverta management board chairman Christopher Gwilliam.