Parex banka submits proposal to its syndicated lenders


On 05 February 2009, Parex banka submitted a proposal to its syndicated lenders
with an offer to change the terms of their existing loan agreements. The
proposal anticipates that 70% of the total outstanding loan will be repaid
during the first 12 month term beginning with a 20% payment in February, 2009.
The remaining payment of 30% is due in January, 2012. 
Nils Melngailis, Chairman of Parex banka's Board emphasises: “In light of the
global financial crisis and the difficult circumstances in Latvia in
particular, we believe the proposal is fair. It is strategically important that
the Bank resumes full operations as soon as possible, including resuming
lending.” 
The particular terms of the proposal involve a EUR 155 mln and cumulative
interest rate payment on 18 February 2009, a EUR 387 mln payment in February
2010, with the remaining EUR 232,5 mln due in January 2012. 
Parex banka has two outstanding syndicated loan agreements: the EUR 275 million
credit agreement dated 21 February 2008 and EUR 500 million credit agreement
dated 29 June 2007. 

About Parex banka:
Being founded in 1992, Parex banka offers universal banking services throughout
the Baltic region, the CIS and other European countries such as Germany,
Switzerland and Sweden. Parex Group companies operate across the banking,
finance, leasing, asset management and life insurance sectors. Parex banka is
the only partner of American Express in Latvia and Lithuania, allowed to issue
American Express credit cards. Since 05 December 2008 the State owned Mortgage
and Land Bank of Latvia is the majority shareholder of Parex banka. 

Additional information:
Indra Zinkevica
Head of Corporate Communications and PR
Parex banka
Phone: +371 67778571
E-mail: pr@parex.lv