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.
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.
In 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.