In 2016 Joint Stock Company Reverta paid 60 million euros to the State Treasury, which is by seven million euros more than in 2015. Of this sum, 40 million euros were used to repay the principal amount and 20 million euros were used to repay the interest on State aid to Parex banka.
The results of the previous year were significantly improved through several large and complex projects in Latvia and abroad, completion of which required many years of sustained efforts. One of the best known is the reconstruction, lease and sales deal of the central AirBaltic office building for the total amount of 6.2 million euros.
Between 1 August 2010 and 31 December 2016 Reverta has recovered EUR 735.7 m from the restructuring of distressed loans, sales of bonds, and disposal of real estate properties, which is 65 per cent of all assets. EUR 426.4 m have been paid directly to the State Treasury, and this is only a part of all obligations fulfilled and payments made by Reverta in due time and in full amount.
“By 31 December 2016, in the form of various payments the State has received from Reverta more than EUR 670.6 m. This is indeed a good indicator in view of the status and quality of the distressed assets left behind by the previous shareholders of the bank. Often the real market value of the assets was only 10 per cent of the loan,” points out Solvita Deglava, Chairperson of the Management Board of Reverta.
Solvita Deglava emphasizes: “It was clear already in the middle of 2010 when recovery of the State aid was commenced that Reverta will not be a profitable company. We were aware of the expected losses but have done our best to substantially reduce them.”
“This year we are going to continue the restructuring of the remaining loans and the recovery of funds in addition to the cooperation with a consultant to actively sell Reverta’s portfolios. It is our task to discontinue Reverta’s economic activities by the end of 2017,” explains Solvita Deglava.
As most of Reverta’s assets have been already disposed of, currently company’s total assets are less than 70 million euros. During 2016, assets of Reverta decreased by euro 79.8 m or 55 %, as compared to 31 December 2015.
Additional information:
Reverta is a distressed assets manager, the main competencies of which are loan restructuring, debt recovery and real estate management. According to the Restructuring Plan approved for Parex banka by the European Commission, Reverta’s economic activities will be discontinued at the end of 2017. By this term Reverta has to complete sales of its portfolio and cease all operations.
To learn more about Reverta, please visit the company’s web page: www.reverta.lv.
For more information contact:
Marita Ozoliņa
Head of Communication and Marketing
Tel.: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv