Latvian bank Parex Banka has sold its Russian
subsidiaries Parex Leasing and Extroleasing to recover a
significant share of the funds it owes the Latvian government.
The bank sold the leasing subsidiaries to a
company that belongs to Russian Unicorbank Group, with the aim of
recovering $120m (€88.9m) through collection of receivables,
according to a company statement.
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Until the end of 2013 Parex Banka will
continue to receive payments through gradual selling of the leasing
companies’ problematic asset portfolios.
Christopher Gwilliam, chair of Parex Bank, said: “Gains from
selling Parex Leasing and Extroleasing are significantly larger
than we could expect from continuing the companies’ business
activity for a limited period of time.”
He added: “Therefore I am glad that we were able to use the
beneficial situation in our favour and conclude the planned
transaction in a time when the market is generally more
advantageous for buyers than sellers.”
The bank is also considering selling its
leasing subsidiaries in Ukraine and Azerbaijan.
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By GlobalDataIn 2010, Parex Banka reportedly
sold its Belarusian leasing arm for $100 (€79).
Since that year, Parex Banka has been assessing the
opportunities of selling leasing companies located in the CIS.
Elza.HolmstedtPell@vrlfinancialnews.com
