Banks, Financial Services, Latvia, Legislation

Of this amount, EUR 540,000 have been paid to the Treasury and EUR 1.4 million to Reap, the Latvian Privatization Agency’s new subsidiary that has taken over Reverta’s remaining unprocessed assets and loans.

"At the end of 2017, we successfully completed the handover of Reverta’s remaining rights to demand and properties to Reap as planned, so Reverta has practically folded its operations," said Reverta liquidator Ruta Amtmane, adding that work is currently under way on closing the company’s local and foreign branch offices and a number of pending legal processes. The company is still receiving objections from creditors whose claims have been declined as groundless.

Reverta paid EUR 19.8 million in interest in 2017, and the distressed asset manager’s total payments to the Treasury made since 2010 have reached EUR 446.2 million. In all, the state has received more than EUR 700 million in various payments from Reverta.

The total amount of money recovered by Reverta has reached EUR 765 million, or 70% of the distressed assets left by Parex Bank.

As reported, on May 29, 2017, Reverta shareholders decided to start the company’s liquidation. Under an agreement, which was signed on June 22, Reverta’s loan portfolio was sold to Gelvora, a company owned by Swedish financial holding Marginalen.

It has also been reported that in 2010, troubled Parex Bank was split into a good bank and a bad bank. The good bank was called 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. According to the Restructuring Plan approved by the European Commission, Reverta's operations had to be discontinued by the end of 2017.