Banks, Financial Services, Latvia

As reported, last week, the government took the decision to repay the first part of the loan to the syndicated lenders this month.

Parex banka board chairman Nils Melngailis explained to reporters that the bank had offered to repay a smaller first installment, but after talks with the syndicated lenders, it was decided that 30% of the total loan amount or EUR 232.5 million would be repaid.

According to the government's decision, next year Parex banka will have to return EUR 310 million to the syndicated lenders, and the remaining EUR 232.5 million in 2011.

According to Melngailis, the money will be taken from the State Treasury, and the first payment could reach the syndicated lenders' accounts on March 18.

LETA also reported that Parex banka has signed two contracts with the syndicated lenders – agreement on EUR 500 million (LVL 351 million) loan was signed on June 29, 2007 and on EUR 275 million (LVL 193 million) on February 21, 2008.