Audited financial results of joint-stock company Reverta for 2016 (hereinafter also referred to as the Reporting Period) show that funds recovered in 2016 amount to EUR 74.1 m, as compared to EUR 61.3 m over the same period in 2015. This is a result of several large projects having been completed in Latvia, Lithuania, Estonia, and Russia after many years of work.
The largest projects completed in 2016 were the Lithuanian loan project (EUR 10.6 m), Meridiane – a valuable land plot in Tallinn (EUR 9 m), the reconstruction, lease and subsequent sales of the central office building of airBaltic (EUR 6.19 m), and the sales of a commercial property at Frunzenskaya Naberezhnaya in Moscow (EUR 2.3 m).
During the Reporting Period, Reverta has repaid the State Treasury EUR 60 m, of which EUR 40 m was used to repay the principal, and EUR 20 m was used to repay the interest on State aid granted to Parex Bank.
‘2016 was a difficult but also successful year because after many years of sustained efforts we managed to conclude several complicated projects outside Latvia. As a result, since August 2010 till the end of 2016, we have recovered EUR 740 m or 66 per cent of all assets received from Parex Bank,’ points out Solvita Deglava, Chairperson of the Management Board of Reverta.
‘Already since the start of our operation we have been informing supervisory authorities and the wider public that loss will have to be recognised. Nevertheless, we have done everything in our power to recover as much as possible and to reduce loss. The amount of the recovered State aid will depend on what will be the conclusion of the commenced sales process of the remaining difficult assets,’ says Solvita Deglava.
At the end of the Reporting Period Reverta’s total asset portfolio was EUR 57.2 m – as a result of an intensive workout, over a year Reverta’s assets have decreased by EUR 87,4 m or 60 per cent.
CORRECTION: Report on Corporate Governance 2016 is attached.
Additional information:
Reverta’s main competencies 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 our 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
