Budget, Financial Services, Latvia, Markets and Companies

These figures were included in the report on Reverta's results that was presented to the Latvian govenrment today, said Guntis Karklins, a representative of the Latvian Privatization Agency.

According to the report, a number of deals were concluded at the end of 2016 but the money was received at the beginning of 2017 therefore the timetable for recovery of the state aid will be adjusted accordingly.

As reported, Reverta was created as a result of restructuring the bailed-out Parex Bank. Under the Parex Bank's restructuring plan, which has been approved by the European Commission, Reverta has to fold its operations by the end of 2017. Most of Reverta's assets have been already disposed of, currently the company's total assets are less than EUR 70 mln . During 2016, assets of Reverta decreased by EUR 79.8 mln  or 55%, as compared to December 31, 2015.

Between August 1, 2010 and December 31, 2016, Reverta recovered EUR 735.7 mln from the restructuring of distressed loans, sales of bonds, and disposal of real estate properties, which is 65% of all assets. EUR 426.4 mln has been paid directly to the State Treasury.

By December 31 last year, in the form of various payments the state had received from Reverta more than EUR 670.6 mln .

In fall 2008, Parex Bank, the second largest bank in Latvia at the time, sought government assistance to stave off financial trouble brought about by the global financial crisis. To support the failing bank, the Latvian government decided to take over a controlling stake in Parex Bank from the bank's founders, major shareholders and top executives Valerijs Kargins and Viktors Krasovickis.

In 2010, Parex Bank was split into a good bank and a bad bank. The good bank was called the Citadele Bank and successfully continued the banking business, but the bad bank, left with the distressed assets of Parex Bank and later named Reverta, ceased to provide commercial banking services and instead focused on restructuring of loans, recovery of debts and management of repossessed real estate in order to recover the money invested by the Latvian government in the Parex Bank bail-out.

As Reverta has to discontinue its operations by the end of 2017, four prospective investors have recently been invited to conduct due diligence on its remaining loan portfolio.