Banks, Financial Services, Latvia, Loan

The bank repaid the loan with its own funds, without drawing any money from the state budget, stressed Ozolina-Tumanovska, adding that the key obligations of Parex banka have been honored at no cost for the state budget.

Parex banka CEO Christopher Gwilliam is pleased with the job done by the bank's team, taking into account the complicated fiscal situation in the country and the difficult political decisions that are to be made by the government regarding budget consolidation. The bank has been able to fully repay its syndicated loans, and this was done at no cost for the state budget and taxpayers.

International financial market players also watched closely whether Parex banka would be able to settle its liabilities on its own, and considered this fact an important indicator of Latvia's economic recovery.

The repayment of the syndicated loan on time, without any state aid, is a positive signal to foreign investors and rating agencies. It proves gradual economic recovery of Latvia and the correctness of the strategy chosen for tackling problems in the banking sector, said Gwilliam.

According to Parex banka’s restructuring plan, it was able to repay the syndicated loan by restructuring non-performing loans and selling securities, said Ozolina-Tumanovska.

She goes on to say that, thanks to a cautious strategy, Parex banka has been able to avoid selling its assets at inadequately low prices.

Gwilliam thanks all the bank's employees, Financial and Capital Market Commission, Finance Ministry and State Treasury that have cooperated with the bank and helped it overcome many problems that had initially seemed insurmountable. The bank has successfully implemented its first important task, said Gwilliam.