Banks, Financial Services, Latvia, Legislation, Loan

EUR 9.7 million was paid to the State Treasury during the first half of the year and another EUR 12.8 million was paid after the end of the reporting period – in August 2015.

Reverta concluded the first half with EUR 26.23 million in losses, while the Group's losses amounted to EUR 27.04 million, according to the company's financial report for the first half of the year.

Since August 1, 2010 to the end of the reporting period Reverta has recovered a total of EUR 625.5 million and the State has received a total of EUR 569 million in the form of various payments, including direct payments to the Treasury in the amount of EUR 323.2 million.

During the reporting period Reverta’s activities were still being affected by unfavorable external conditions, especially the Russian-Ukrainian conflict, as a result of which the amount of funds recovered from the CIS portfolio has sharply decreased. Recession of Russian economy and devaluation of the ruble made it difficult for clients based in Russia and other CIS countries to repay their loans. Furthermore, often borrowers used the situation to their advantage by trying to hoard their assets and ceasing payments.

Similarly to previous years, the loan recovery process is being significantly encumbered by the overloaded and inefficient Latvian court system. Average period of disposal of a case is 5-7 years, during which the value of the pledged objects significantly decreases along with the amount recovered from their sales. The lengthy proceedings also consume a considerable amount of human resources: at the end of the reporting period there were 2440 court proceedings in various stages and 2009 credit card cases on Reverta’s agenda. During the first half of the year Reverta has participated in 621 court hearings.

On June 30, 2015, Reverta’s total assets were EUR 194.9 million, of which EUR 134.7 million was made up of its loan portfolio.