Company

For Media

Dec 23, 2008
Mr Andzs Ubelis elected to Chair Parex banka’s Supervisory Council

On 23 December, Andzs Ubelis, the Deputy State Secretary of the Ministry of Finance of Latvia, was elected as the Chairman of the Supervisory Council of Parex banka during the first meeting of the new Council.

As stated by A.Ubelis, the main tasks of the Parex banka’s Council will be professional and efficient supervision of the Board of the Bank and decision making. Short-term priorities include the assessment of the Board’s proposals of the stabilization and restructuring of the Bank, as well as its future development strategy.

“To ensure the restoration and strengthening of the confidence of the Bank’s clients, the Latvian Government has supported the proposal to provide the Bank with vital liquidity resources. This is the most significant prerequisite for the provision of sound banking services in the nearest future,” emphasized the Chairman of the Supervisory Council of Parex banka A.Ubelis.

Mr. Ubelis holds a MSC of International Economics and Public Policy from Cardiff Business School of Cardiff University, MA (DEA) of European Law and Policies from the Centre of European Studies at the University of Nancy and has graduated from the International Relations Program at the University of Latvia. Since 2004 Mr. Ubelis is Deputy State Secretary of the Ministry of Finance, covering the international financial support issues. During more than 10 years of his career in the State administration Mr. Ubelis has held various positions related to management of EU funding and European integration issues. Currently Mr. Ubelis is also Alternate of Latvian Director at European Investment Bank.

The first meeting of the recently appointed Supervisory Council of Parex banka took place on Tuesday 23 December. The Council of Parex banka was elected on 19 December during the extraordinary Shareholders’ meeting of the Bank. In accordance with the decision made during the meeting the following members were elected in the Parex banka’s Council – Rolands Paņko, Andžs Ūbelis, Kaspars Āboliņš, Gints Freimanis, Carl Hakan Kallaker and Žaneta Jaunzeme – Grende. The Council is a supervisory body of the Bank, representing shareholders’ interests at the Bank in between the shareholder meetings and supervising actions of the Board; thereby, ensuring further growth and development of the Bank’s operations.

With a track record of consistent growth since being founded in 1992, Parex banka offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. There are more than 2200 employees working in Parex banka offices across Latvia. Parex banka is the only partner of American Express in Latvia and Lithuania, allowed to issue credit cards American Express. Since 5 December 2008 the State owned Mortgage and Land Bank of Latvia is the majority shareholder of Parex banka.

Dec 18, 2008
Parex banka to expand relationship with American Express and explore new service offerings

At a meeting this week, Nils Melngailis, t he Chairman of Parex banka, and Alex M Furber, American Express Vice President in Central and Eastern Europe, agreed to explore further options for co-operation. Following the meeting Nils Melngailis said that Parex banka sees opportunities in current market conditions to strengthen its position in the credit card market through its exclusive relationship with American Express. „As a result of the very successful co-operation between Parex banka and American Express in the past, American Express are now looking to explore new opportunities with us. We welcome these discussions and intend to expand the Bank's activities in the Latvian credit card market. One of the great strengths of Parex banka is the loyalty of our clients to our brand and we will build on this as part of developing our new growth strategy,” the Chairman of Parex banka emphasised.

In 2005, Parex banka was granted exclusive rights to distribute American Express credit cards in Latvia and today it offers three types of credit cards: The Platinum Card, American Express Gold and Blue from American Express. These cards are unique because they are designed to serve local customers at home and abroad to meet their evolving lifestyle needs by providing access to exclusive benefits and services that only these American Express Cards can provide.

Dec 17, 2008
Nils Melngailis, Chairman of Parex banka, answers clients’ questions

How do you assess the current situation at Parex banka ?

Although the bank is now stable, diligent work is still under way so it is too early to make any forecasts about the future. My first impression is that the loan portfolio of Parex banka is in no way worse than the loan portfolio of any other large bank; it is even better. As with other banks, the value of our loan portfolio is affected by our prognosis of developments in the real estate market. However, the proportion of “bad” loans related to real estate in our loan portfolio is smaller if compared to the same parameter in other large banks. The credit division of Parex banka is very carefully structured and is significantly diffrenet from the rather formal approach to lending in other banks, where as much as 90% of the property value was granted. Here, at Parex banka , the approach has never been like this and the process of issuing a loan has always included a close scrutiny of client's business and cash flow, collateral being a secondary issue. Naturally, I will do my best to keep clients, employees and journalists informed about developments at Parex banka .

What were your first tasks as the Chairman of Parex banka ?

Uppermost was communication with the top executives, employees and clients of the Bank. Despite the situation, the Bank is performing its regular operations in full, thanks largely to our employees. Secondly, it is essential to support the Government in its negotiations with the International Monetary Fund as it is important to the whole country. And thirdly, discussions with our syndicated lenders, which I have already begun.

From your point of view why are the Latvian State's negotiations with the International Monetary fund of such importance?

This is an issue of stability. If the International Monetary Fund grants financial support to the State, we will also have a better access to the necessary financial support. Currently, the Government has to grant support to all those experiencing difficulties. In the short term it is important to ensure the liquidity of the Bank to secure the fulfilment of our short-term liabilities. Following all the unclear news over the past three weeks, the net position has been negative every day – people tend to withdraw money more than they place with the Bank. I personally have spent a lot of time talking with our major clients both residents and non-residents, to understand under what circumstances they would be ready to return to the Bank and keep their money here. Many of the clients have said they would return to the Bank once we confirm details of the funding to be received from the Swedish Government, which will cover the space in time between the conclusion of the IMF memorandum and the actual receipt of funds by Latvia.

How much money is needed in order to stabilise the financial situation at Parex bankas ?

Time will tell but this is very much dependent on the inflow of deposits. We are actively working with our clients, and I truly hope that we will succeed in reducing the amount of financial support required. Moreover, the amount of financial resources required is highly dependent on the outcomes of negotiations between the Latvian State and IMF , as well as the clients' trust in the Parex banka .

Will you continue to look for a strategic investor for the Bank?

Currently, the foremost priority is to stabilise the situation at the Bank. Moreover it is clear that the global liquidity crunch has had adverse effects not only on Parex banka, but also on potential buyers.

Is it possible that EBRD could become a strategic investor in the Bank?

Similarly to the International Monetary Fund one of the main tasks of the European Bank for Reconstruction and Development is to provide support to the Governments and enterprises experiencing hard times; hence, I do not exclude a possibility that EBRD could become an investor in Parex banka .

Could you comment on your previous experience prior to your appointment as the Chairman of Parex banka ?

My previous working experience is related to the management of large enterprises, search of investors, as well in the banking sector. The decision to accept the position of Parex banka's Chairman was made relatively quickly as it was important to come on board, managing the Bank and starting communication with clients and employees, as soon as possible to prevent any further effects on the Bank. Time will tell how the situation will develop, but, taking into account current circumstances, I believe that the situation will stabilise.

There will naturally be a few challenges along the way but I look forward to being part of Parex banka's future growth.

Dec 16, 2008
The proposed support from Swedish and Danish Central Banks to help stabilise the Latvian banking sector

Parex banka: The Swedish and Danish Central banks have today announced their willingness to close a SWAP agreement with the Bank of Latvia, in order to support the State and help stabilise the Latvian banking sector. The proposed agreement will allow the Bank of Latvia to borrow up to EUR 500 mln in return for Latvian lats. The decision is directly linked to the stabilization and further recovery of the Latvian economy.

“We believe that the support proposed by Swedish and Danish Central Banks will be very positive for both the Latvian State and Parex banka’s clients. The decision reinforces our belief that the situation is stabilising giving additional security to our clients with deposits in Parex banka,” Nils Melngailis Chairman of Parex banka says.

Dec 9, 2008
New Chairman of Parex banka affirms stability of the Bank

In a press conference held on 8 December 2008, Nils Melngailis, the recently appointed Chairman of Parex banka emphasised that the Bank was continuing to work normally and that conditions in the banking sector were stabilising following Government intervention.

“Since my appointment on Friday I have been working intensively with the senior management of Parex banka to form a full understanding of the current situation. It is now clear to me that much recent speculation about the Bank has been very much exaggerated. In particular, the outflow of deposits has been overstated and has decreased significantly. Even so, the global environment is obviously very challenging and we are monitoring developments in the market closely. In this respect one of the most important factors for us is the outcome of the State’s negotiations with the International Monetary Fund,” Nils Melngailis stated in the press conference.

Directly answering questions about the level of deposit withdrawals from the Bank last week, Mr. Melngailis stressed that these amounted to LVL 50 million rather than the 200 million that had been widely reported. He further added that the subject of a potential strategic investor is not a current issue: “Currently, the foremost priority is to maintain stability at Parex banka. We will of course consider seriously any interesting proposals that may be made, but our main focus is to deal with the situation created by the global liquidity crunch.”

In order to clarify the issues related to the possible amount of support required by Parex banka, Nils Melngailis stated that the Bank was not seeking a specific sum from the Government: “The situation is continuing to develop and we are as usual working very actively with our clients and depositors. Our success in retaining the confidence of our clients naturally reduces the extent, to which we look to the Government for support, but in any case the scope of the Government’s intervention is dependent on the State’s negotiations with the IMF.”

Likewise, Mr. Melngailis highlighted that the most important tasks definitely include communication with top personnel of the Bank, employees and clients. “Despite the events of the last three weeks, the management and staff of Parex banka have ensured that the Bank has remained fully functional,” Nils Melngailis said. Other key tasks for the Bank mentioned by Mr. Melngailis include supporting the Government in negotiations with International Monetary Fund and concluding negotiations with Syndicated lenders.

Dec 8, 2008
Nils Melngailis Appointed as Chairman of New Board of Parex banka

The new Management Board of Parex banka took office on 5 December 2008. It is chaired by Nils Melngailis, a former Executive Director of Lattelecom, the leading communications company in the Baltics.

In addition, the following senior managers of Parex banka have been appointed to the Board of the Bank: Guntis Beļavskis, Senior Vice President and Head of Customer Services Division, Valters Ābele, Head of Credit Risk Division and Vladimirs Ivanovs, Vice President, Customer Service Department.

After leaving the position of Executive Director at Lattelecom in April this year, Nils Melngailis established the investment firm Riga Capital, where he became President.. Under his leadership the Lattelecom Group introduced and implemented an extensive modernisation project, transforming the fixed communications operator into a modern electronic communications provider in the fields of telecommunications, internet and digital TV. He also represents the U.S. investment company Blackstone Group in the Baltic Region.

Nils Melngailis was previously a Partner at the Northern Europe division of IBM Business Consulting Services, as well as a Partner at PriceWaterhouse Coopers in London and the responsible Partner for the Baltics. He was also the manager in charge at Coopers & Lybrand auditors in Latvia.

The Management Board of Parex banka was elected after the acquisition agreement was signed on 5 December 2008. Under the terms of the agreement, 84.83% of Parex banka’s shares have been transferred to the state-owned Mortgage and Land Bank of Latvia. The existing minority shareholders of Parex banka will retain the remaining 15.17% of the Bank’s capital. The new board has been approved by the local regulator FCMC.

Dec 2, 2008
Restrictions on debit operations will not affect the daily life of private individuals; no changes for the majority of commercial payments

On 1 December 2008, the Cabinet of Ministers of Republic of Latvia and the Financial and Capital Market Commission (FCMC) jointly decided to restrict debit payments at Parex banka.

The temporary measure made by the FCMC and the Cabinet of Ministers is a facility available under the Credit Institution Law of Latvia and is designed to prevent the excessive outflow of deposits and other funds from credit institutions.

Parex banka has been actively working with our customers to stabilize the unnecessary withdrawal of funds from the Bank. However, this decision was made to further secure the Bank’s operations.

Only a small number of Parex banka’s clients may be inconvenienced by this decision, as, in fact, these restrictions will only apply to transactions involving unsubstantiated outflow of funds from the Bank.

The Bank will continue to perform debit transactions (i.e., through online banking, ATMs and by cash) up to a total of LVL 35,000 per month for private individuals. The Bank will be restricted from performing debit transactions (i.e., through online banking, ATMs and by cash) for corporate clients if these transactions are not related to commercial activities. The debit operations related to commercial activities for corporate clients have been limited to LVL 35,000 (for companies employing up to 10 people) and LVL 350,000 (for those with 11 – 250 employees) per month.

These restrictions will not apply to legal entities where the number of employees exceeds 250; payments to the Latvian State budget, State and municipal institutions; transactions with the Bank of Latvia; payments to enterprises, whose operations are related to production of goods and services in regulated industries; deposit interest payments; and liabilities to the Bank and its subsidiaries.

Nov 26, 2008
The European Commission approves Latvian State support to Parex banka

The European Commission has approved, under EC Treaty state aid rules, the emergency support intended to facilitate the financing of Parex banka. The Commission found the aid to be in line with its guidance Communication on state aid to overcome the current financial crisis. The aid is necessary to avoid a serious disturbance in the Latvian economy. The measures are limited in time and scope to the minimum necessary to restore the financing, require an adequate fee level and provide safeguards to minimise distortions of competition. They are therefore compatible with Article 87.3.b. of the EC Treaty.

Competition Commissioner Neelie Kroes said: "After intensive exchanges with the Latvian authorities, the Commission approved the urgently needed measures as the notified measures are compliant with the State aid rules." Iveta Šulca, Head of the Europena Commission’s bureau in Latvia added: “The European Commission made a decision as soon as all the necessary information and guarantees of the compliance of the state aid to the principles of fair competition were provided by the Latvian side. The European Commission offers its member states a wide range of instruments for the stabilization of the financial system in the circumstances of global crisis, e.g. guarantees and capitalization. Tomorrow the Commission will propose an in-depth European Union recovery plan for co-ordinated actions to overcome economic crisis.”

On 10 November 2008, the Latvian authorities notified a package of measures aimed at tackling the liquidity problems and possible shortcomings in capital of Parex banka. The measures were necessary, because of the drying up of the funding markets and due to the distorted valuation of the financial instruments.

The package consists of a state guarantee covering certain existing and new loans, of a state 1-year deposit to support the bank's immediate liquidity needs and of subordinated loans to strengthen its capital base. The maturity for new loans is limited to three years and for subordinated loans to five years.

The package comprises elements of state aid but contains several provisions aimed at ensuring its adequacy and proportionality under the EU state aid rules, in accordance with the Commission's guidance document.

In particular, the measures will be remunerated by significant fees. Moreover, a series of behavioural commitments will be imposed on Parex banka. These include a limit on growth in balance sheet, marketing restrictions relating to the state support and limitation to acquire businesses or companies, while it benefits from the aid.

The Commission decision covers a period of six months, following which Latvia should terminate the public support to the bank or renotify to the Commission for a new assessment. This will enable the Commission to verify that the support measures are not maintained if the financial crisis is over. The Commission reserves the right to review its assessment, if the measures are modified by the Latvian authorities.

The non-confidential version of the decision will be made available under the case number NN 68/2008 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

Nov 12, 2008
Parex banka signs agreement with Government

An agreement (the “Agreement”) allowing Parex banka to receive financial support from the Latvian Government has been signed on 10 November 2008. The Agreement has been signed by the Ministry of Finance of Republic of Latvia , state-owned Mortgage and Land bank of Latvia (“Mortgage Bank”), and Mr. Valery Kargin and Mr. Viktor Krasovitsky, majority shareholders of Parex banka .

Under the terms of the Agreement 51% of Parex banka's shares will be transferred to Mortgage Bank with a buy back option after one year. Mr. Valery Kargin and Mr. Viktor Krasovitsky will remain the owners of 34% of shares but undertake to vote with these shares as instructed by Mortgage Bank . The existing minority shareholders of Parex banka will retain the remaining 15% of shares and their respective voting rights will not change.

To provide additional security to Mortgage Bank Mr. Valery Kargin and Mr. Viktor Krasovitsky will pledge their remaining shares of Parex banka together with other private properties and at least LVL 14 million (EUR 20 million) deposits in Parex banka each.

The new President and Chairman of Parex banka will be nominated by the Latvian Government and approved by the Financial and Capital Market Commission, the regulator of the Latvian financial sector. Mr. Inesis Feifers, Chairman of Management Board of Mortgage Bank , is likely to be appointed as the Chairman of the Management Board of Parex banka , while Mr. Martins Bicevskis, State Secretary of Ministry of Finance, is nominated as the Chairman of the Supervisory Council of Parex banka . Mr. Kargin and Mr. Krasovitsky will remain as board members.

In return, the Latvian State will provide support to Parex banka , including issuing sureties for refinancing of the two outstanding syndicated loans. Subject to and in accordance with the terms of the Agreement, these sureties will be issued on the condition that the European Commission approval of such state aid is in force and allows for the issue of the respective sureties. The sureties will be issued within six months of the date on which the European Commission approves them and will be valid for a period, which does not exceed five years from the date of the issue.

In addition to sureties, Parex banka will get access to an up to 10 year facility in amount of LVL 200 million (EUR 285 million), which could be used as subordinated capital. Similarly to the sureties, this facility will be issued on the condition that the European Commission approval of such state aid is in force and allows for the issue of the respective facility.

The changes to the shareholder and management structures are expected to be finalised in the next two weeks subject to fulfilment of certain conditions precedent including obtaining consent from the Syndicate Lenders. Both Mortgage Bank and Parex banka will continue to operate as separate financial institutions – each with its own management and business divisions. No decisions have yet been taken as to the future development strategy of Parex banka and providing the best service to its clients remains the bank's key priority. Bringing the Latvian State as the majority shareholder of Parex banka shall improve confidence of the bank's customers, lenders and partners.

As previously announced, the Government of Latvia decided to provide support to Parex banka in an extraordinary meeting held on Saturday, 8 November 2008. This decision was made to ensure the stability of Latvia's financial system. Parex banka's shareholders turned to the Government for support, as capital adequacy and liquidity indicators were affected by deepening global financial crisis coupled with unequal competition with the foreign banks, which have secured support from their respective governments.

Nov 9, 2008
Parex banka to receive Government support

We would like to acknowledge the Latvian Government’s decision to follow the principles developed by the leaders of European Union member states, granting State support to the financial sector in the context of the global liquidity crunch. State support to the financial sector in this way has been introduced in a similar way in the vast majority of European Union member states, including, Sweden (46% of the total assets of the Latvian banking sector is held by financial institutions in Sweden), Germany, the United Kingdom, Hungary and others.

Parex banka is the largest independent financial institution with a local capital base in Latvia, and today the Government has affirmed conditions, by which support to the Bank will be provided. Within the framework of the stabilisation package, Parex banka received State decision to issue guarantees, enabling the Bank to preserve its liquidity at a sustainable level, and obviating possible doubts about the Bank’s capabilities of raising funds in the international debt markets.

State support has been granted on the basis of business provision, meaning that the shareholders of the Bank have to take certain obligations in favour of the State. In accordance with the terms of the agreement between the Bank and the Latvian State, 51% of Parex banka’s shares are being sold to the State, with existing shareholders having the rights to buy back the stake.

“We fully recognise the importance both of our and the State’s actions. The current cooperation model will help both our clients, shareholders and the management. Parex banka remains fully committed to providing the best service to our clients, who have entrusted their funds to the Bank, as we have been repeatedly demonstrating for over 20 years of our existence,” the Chairman of Parex banka’s Council Guntars Grinbergs says.

As a result of the capital investment by the Latvian Government, Parex banka is reviewing its current management structure and expects to announce details of any management changes shortly.

Oct 27, 2008
Deposits from private individuals at Parex banka grow by 33,5% in 9 months of 2008

Despite the tense situation in the global economy, Parex banka continues its activities in both, Latvian and foreign financial markets. Thus, in 9 months of 2008 the amount of deposits from private individuals at Parex banka has increased by 33,5%. Moreover, Parex banka’s market share in this particular segment has seen growth by 3,7%. The total amount of deposits at Parex banka, as at 30 September 2008, reached 1,94 billion lats, wherewith Parex banka’s market share in terms of deposits has increased by 1,3% to 19,2%, which is a substantial indicator of clients’ confidence in the Bank.

Parex banka traditionally enjoys the leading position by the amount of attracted deposits. While the loan portfolio of the bank stood at 1,90 billion lats, as at 30 September 2008; thus, the amount of deposits attracted at Parex banka is equal to the amount of loans issued by the bank.

About Parex banka

With assets exceeding EUR 4.4 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. There are more than 2600 employees working in Parex banka offices across Latvia. Parex banka is the only partner of American Express in Latvia and Lithuania, allowed to issue credit cards American Express. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Oct 20, 2008
Top world finance specialists gather at the forth annual initiative Latvian Investment day: the Baltic outlook

Parex banka is pleased to announce that in cooperation with the Embassy of the Republic of Latvia in the UK the forth annual seminar Latvian Investment Day: the Baltic Outlook was heldin London on 17 October 2008. The event gathered about seventy senior international professionals in banking and finance, discussing the recent economic developments in Latvia on the back of global financial turmoil.

The seminar was opened by His Excellency, the Ambassador of Latvia in the UK, Mr. Indulis Berzins and the Member of the Council of Parex banka Mr. Viesturs Neimanis. Both hosts welcomed the seminar attendees and stressed the importance of the successful development of bilateral relations between Latvia and the UK.

Opening the forth annual Investment Day in London H.E. Indulis Berzins, the Ambassador of Latvia in Great Britain pointed out: “Bilateral relations between Latvia and the UK are very good. Economic and cultural ties, as well as people to people contacts are expanding from year to year. The UK has become the 6th largest export partner for Latvia with a positive trade balance on Latvia’s side. The UK also is a considerable investor in Latvia - 7th in foreign direct investment. We are like-minded countries in many economic policy issues such as supporting liberalization, open markets, and competition. Political exchanges between our countries are very active on different levels. In fact, the Foreign Minister of Latvia will be visiting London in ten days’ time and the ex-President of Latvia Prof. Vaira Vīķe-Freiberga will visit London in mid November to open our 90th Independence day celebration - just to name a few.”

In his speech the Ambassador expressed that in the current global economic and financial environment Governments in Europe and around the globe, international structures, as well as market players themselves are putting in place all necessary measures to maintain economic stability and ensure confidence in markets.

Mr. Viesturs Neimanis stated: “In the modern world open communication and access to extensive information are very important in building understanding and credibility. Especially, in these sensitive global market conditions and growing constraints on the unbalanced economic developments in the Region, open dialog should be developed with the international community, bringing recent, accurate and objective information from the prime sources.”

“In order to bring as much objective information about the situation in the Baltics as possible, Parex banka is pleased that the event brought a Baltic flavour by adding presentations from other market participants and industries and proving new angles for opinion formation,” Mr Neimanis added.

The Latvian Investment Day has become an extensive information platform for banking and asset management professionals interested in the Baltic States and the CIS. This year the event added a Baltic flavor discussing a broader range of investment topics related to the Baltic States. Latvian Investment Day: the Baltic Outlook in London featured three panel discussions, covering such topics as: Macroeconomic Environment in the Baltics, Banking Sector in the Baltics: Current Outlook and Future Focus and Investment Opportunities in the Baltics. Parex banka’s representatives delivered speeches on Latvian banks’ funding prospectives on the back of global liquidity crunch and Perspective on Investment Opportunities in the Baltic, as well as provided in-depth discussion on Risk Management and Anti Money Laundering issues.

This year the Latvian Investment Day had an extensive program and brought speakers from Bank of Latvia, Ministry of Economics of Latvia, Association of Latvian Commercial Banks, Investment and Development Agency of Latvia, Mortgage and Land Bank of Latvia, international property advisors Re&Solution and law office Klavins&Slaidins LAWIN.

About Parex banka

With assets exceeding EUR 4.4 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. There are more than 2600 employees working in Parex banka offices across Latvia. Parex banka is the only partner of American Express in Latvia and Lithuania, allowed to issue credit cards American Express.  Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Oct 6, 2008
Parex banka posts LVL 12,4 million in Jan-Sept profit

Parex banka has posted 12,4 million LVL in profit, according to the financial data summarized on 30 September 2008. The third quarter financial report indicates that Bank’s assets stand at 3,14 billion lats, the volume of loans issued – 1,90 billion lats, but deposits at Parex banka have reached 1,94 billion lats. In terms of deposits (since the beginning of 2008, total deposits have increased by 6%, but deposits from private individuals have grown by 33%) Parex banka is holding the leading position in the Latvian market. Bank’s capital and reserves are worth 208 million lats.

Eriks Brivmanis, the Senior Vice President of Parex banka commented: “Despite the news we, in Latvia, are receiving from the financial sectors of other countries, Parex banka has demonstrated sustainable third quarter financial data. Espesially positive news in these circumstances is the increase in the volume of deposits, which indicates our clients’ confidence in the Bank. We are satisfied with the achieved financial results and regard them as adequate to the current situation.”

About Parex banka

With assets exceeding EUR 4.4 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. There are more than 2600 employees working in Parex banka offices across Latvia. Parex banka is the only partner of American Express in Latvia and Lithuania, allowed to issue credit cards American Express. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Sep 30, 2008
Parex banka launches American Express® Corporate Cards

Acting upon the requests of the customers, Parex banka has developed and launched a new payment card product - American Express® Corporate Cards. These unique payment cards are specially designed to meet the needs of Latvian small and mid-size enterprises.

American Express® Corporate Cards will help the enterprises maximize savings on daily expenses by offering American Express® Business Savings Programme discounts on urgent goods and services like the purchase of office supplies, taxicab services, car park maintenance and insurance expenses, as well as on organizing corporate and recreational events and education. American Express® Corporate Cards offer loans on daily and business travel expenses providing with opportunity to use interest-free loan up to 45 days, as well as an advantageous loan payback system and low interest rates (1,3% for American Express® Gold Business Card and 1,5% for American Express® Business Card).

The goods purchased in Latvia and abroad using American Express® Corporate Cards are covered by insurance against burglary. Outside Latvia, the users of American Express® Corporate Cards are insured against travel inconveniences and will receive assistance and remuneration in case of medical problems.

Becoming a holder of American Express® Corporate Cards, the enterprise will avoid all the inconveniences related to the use of cash. Moreover, American Express® Corporate Cards will deliver significant savings across all key expense categories including time and business management resources (material and human), provide additional funds for daily needs, have the insurance against unexpected situations during business trips and when purchasing goods (purchase protection insurance).

About Parex banka

With assets reaching EUR 4.6 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Sep 25, 2008
Parex Eastern European Balanced Fund is named The Best Balanced Fund in 2008

After a survey by magazine Business New Europe, defining the Best Funds in Central and Eastern Europe, “Parex Eastern European Balanced Fund” was named the best balanced fund in 2008. This fund had the best performance rating of all the other open ended balanced funds, which took part in the BNE survey.

Nick Watson, the Managing editor of Business New Europe magazine, has commented: "Almost all the balanced funds in our survey were in the minus column during the first-half of the year, whereas Parex Asset Management's Eastern European Balanced Fund showed the highest positive performance earning the title of "BNE 2008 best balanced fund".

“We are very happy with the fact that the results of our hard work were highly evaluated. We have changed the tactical allocation of this fund by decreasing the share of equities in the fund, and thus have achieved a positive performance despite challenging market conditions. “Parex Eastern European Balanced Fund” is one of our most successful products, showing stable yield. Since its inception in 2003, the Fund has brought its investors 6.7% yearly.”- noted Robert Idelson, the CEO of Parex Asset Management.

“Parex Eastern European Balanced Fund” seeks long-term capital appreciation by investing primarily in debt and equity securities issued or guaranteed by governments, municipalities, central banks, credit institutions and companies in Eastern European countries. The Fund is diversified across investments in different currencies and countries to ensure greater investment security and protection against the Fund's asset value fluctuations associated with investments in securities of a single currency or country. The Fund was launched in October 2003.

About Parex Asset Management

With over USD 1.2 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is the largest investment company in the Baltic Region and one of the most experienced in the Central and Eastern Europe. PAM invests internationally, maintaining a complete investment product range, whilst constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan. In 2007 the company was named the “Best European Investment Specialist Firm of the Year” by Funds Europe Magazine

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. There are more than 2600 employees working in Parex banka offices across Latvia. Parex banka is the only partner of American Express in Latvia and Lithuania, allowed to issue credit cards American Express. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade)

Sep 22, 2008
Parex banka opens two offices in Estonia

Parex banka continues to expand its operations in Estonia by opening two new offices – in Tallinn and Tartu. The Bank is planning further expansion in the neighbor country by opening another office in Tallinn and other largest cities in Estonia.

Mr. Eizens Slava, Managing Director of Parex banka's Estonian branch, said the Latvian bank has serious business goals in Estonia. "In order to provide the best services to our clients we are actively widening our Estonian bank's services to retail clients and adding new products to our product basket, as well as considering a possibility to open new customer centres," Mr. Slava explained. “Being the largest independent financial institution with local capital in the Baltics, the Bank has a good comprehension of the Estonian customers' needs. At the same time our extensive network of branches and subsidiaries in other European nations and the CIS provides our customers added value based on a unique experience in these markets.”

“With the opening of these two client centres Parex banka is pursuing one of its strategic goals – to become one of the largest and most significant providers of financial services both in Latvia and the neighbouring states. In the nearest future we are planning to open yet another office in Tallinn and add new client service centres in other major Estonian cities. Moreover, in September, the Bank is opening a client service centre in Goteborg, the second largest city in Sweden,” revealed Mr.Peteris Pildegovics, Vice President of Parex banka.

Parex banka in Estonia offers its clients local and international payments, currency exchange, term deposits, online banking and various crediting and leasing products to private and legal entities. The new client centers are located: in Tartu - Soola 1A, and in Tallinn - Mahtra 1, the Mustakivi shopping center.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Sep 8, 2008
More than 20 millon lats put in Parex banka’s cash deposit machines

In two years' time clients have put more than 20 million lats in Parex banka's cash deposit machines, performing several hundreds of transactions daily. The first cash deposit machine was installed by Parex banka in August 2006 in the shopping centre Mols and, currently, seven Parex banka's cash deposit machines are operating at different locations.

Cash depositing facility is very practical and used by a wide range of clients both private individuals, as well as small and medium enterprises; thus, saving on encashment expenses. Cash deposit machines are operating around the clock, which is a substantial advantage of this service. Moreover, the online system allows depositing money into the client's account instantly. The facility is equipped with the state-of-the-art money identification device and is counterfeit proof. Cash deposit machines accept all Parex banka's payment cards and allow payment of bills.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Sep 5, 2008
Parex banka’s loan portfolio increased by 12%

The financial data aggregated on 1 September 2008 indicate that Parex banka’s loan portfolio this year has increased by 12% reaching LVL 1,854 million. LVL 1,236 millon have been issued in loans to Latvian and foreign enterprises. In the segment of loans, Parex banka holds 12,6 % of market share in Latvia.

Traditionally maintaining the total loan portfolio of the Bank at high level, Parex banka has reached the above indices due to its professional activities in the financial markets of neighbouring countries, int. al. in Russia. Thus, for instance, a remarkable loan was granted by the Bank for the construction of large-scale oil and gas extraction fields in the Autonomy of Yamalo – Neneck. In the same region, Parex banka has also provided funding for the construction of liquidized gas production plant, which will start operating in April – May 2009. The total amount of both loans issued by the Latvian commercial bank is more than USD 200 million. The funding will be provided in several stages.

The loans are with a maturity date of 7 years and a floating margin. Considering the tendencies governing the fluctuation of the oil prices in the world’s market, the oil extraction is becoming increasingly cost effective. The pay-back term of the project is expected even earlier than previously predicted.

Commenting on the developments, Vladislavs Skrebelis, Vice-president of Parex banka, said: “We believe that the Russian market is enduring the current rocking in the world financial markets more easily than the USA or Western Europe. The high level of self-sufficiency of Russian market, its considerable capitalisation and plentitude of energy resources speak in favour of its stability. Unlike other foreign investors, we are not afraid to finance projects involving transport and energy, as we realize the high level of credibility of these areas as opposed to speculations on stock markets or handing out mortgage loans.”

At present Parex banka is involved in financing the construction of one of the largest brick production plants in Russia. The production capacity of this plant will be more than 100 million bricks per annum. The total amount of the project is estimated at EUR 75 million, of which 50 million will be granted by Parex banka.

In addition to the loan quality, the loan portfolio of Parex banka stands out for its notable diversification. Thus, e.g. the amount of loans granted to the residents of Latvia account for 64% of the portfolio. By sector – 22% of loan portfolio comprise loans related to real estate purchase or maintenance, 13,9% are loans to the sector of financial intermediaries, 8,6% - loans to transport and energy projects, 9% - loans to trade sector. 33% of all loans are issued to private individuals in Latvia and abroad.

About Parex banka

With assets reaching EUR 4.6 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Sep 1, 2008
Parex banka organizes the Annual CIS banking conference in Riga

From September 10 through September 14, Parex banka is hosting the eighth Annual Interbank Conference in Riga, which has gathered more than 100 representatives from the banking sectors of eight countries. Along with the traditionally represented financial institutions from Latvia, Azerbaijan, Belarus, Kazakhstan, Moldova, Russia and Ukraine, this year for the first time the conference welcomes a Swiss company “Corporate Alliance AG".

The Annual Interbank Conference is organized by the Financial Institutions Department within the Capital Markets and Investment Banking Division. Commenting on the event, Aleksandrs Lappo, Head of Financial Institutions Department of Parex banka said: “For the eighth year in a row the Interbank Conference in Riga has become a meeting place for our bank's most valuable clients and business partners. We are delighted that the interest in Parex banka's conference is ever growing and the geography of the represented countries is widening. This year we are planning to discuss such current issues as liquidity crunch and its effect on the stock markets of the CIS countries, international loan markets, development of compliance and many others.”

22 speakers will take part in the conference sessions and round tables, sharing their expertise on various topics. Among other issues discussed, a separate round table discussion will focus on the Azerbaijan banks in the international capital markets. The conference will also provide reviews of oil and securities markets.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Aug 25, 2008
Reduction in commission fees for USD payments

Dear Clients,
We are pleased to inform you that Parex banka’s clients may now make standard international payments in US dollars on more profitable terms.

From September 2 till November 30, the commission fees for any USD payments, which are processed via Internet Bank, will not exceed 50 USD (per payment).

Therefore, when making any payment in US dollars, regardless of who pays the commission (sender or the payee), and regardless of the transaction amount, the size of the fee will not exceed 50 USD.

Should you have any further questions, please do not hesitate to contact Your private banker.

Sincerely yours,
Roberts Idelsons

Senior Vice President, Head of Private Capital Management
Parex banka

Aug 25, 2008
Parex Bank expands in Sweden by opening its third office – sub-branch in Gothenburg and gives a start to Charity deposit campaign

Parex Bank today announced that it is increasing its presence in Sweden with the opening of its third office – this time in Gothenburg and starts cooperation with Östersjöfonden with Charity deposit campaign.

“In 2006 Parex Bank started its business activities in Sweden with a first branch in Stockholm. Last year a sub-branch in Malmo followed. Today we are opening our third office in the largest seaport of the Nordic countries – Gothenburg. In general Parex Bank views the region of Baltic Sea as its natural region for expansion and our latest achievements are the best proofs – the markets of Lithuania, Estonia, Sweden and Germany now play as significant role in the development of the bank as its own domestic market of Latvia. The membership of Latvia in EU brings new challenges and new business horizons and we would like to use these opportunities in full”, states Mr.Peteris Pildegovics, Vice president, Customer Service, Institutional and Private Banking Clients, Foreign branches, Parex banka.

The current business development states that the company is here on the right path. “Our attractive and highly competitive savings products with a high interest rate have been a success and we have seen an increase in the number of customers in both Stockholm and Malmö. As well customers from Gothenburg have already showed an interest in our products. Therefore an establishment in Gothenburg feels like a natural step forward. We want to be able to present our generous offer also to private savers in the Västra Götaland region as well”, says Evita Kezbere, Managing Director of Parex Bank in Sweden, at the opening event. “Moreover we are happy to announce our cooperation with Östersjöfonden and our Charity deposit campaign to save the Baltic Sea. We feel responsible for keeping the Sea alive for our children. Therefore for every deposit which will be deposited at Parex bank in Sweden during September 9, 2008 to December 24, 2008 Parex Bank will donate to Östersjöfonden 100 SEK from its own pocket for the project Save the Baltic Sea. Besides every depositor will get the extra bonus interest rate +0,05% above the current interest rate as gratitude for help,” adds E.Kezbere.

The official opening of Parex Bank's new office was honoured by participation of Mayor and Chairman of the City Executive Board Mr. Göran Johansson and Latvia's ambassador to Sweden Mrs. Elita Kuzma. Mr. Göran Johansson formally inaugurated Parex Bank's third office in Sweden by cutting the ribbon together with Gothenburg sub-branch manager Mr. Anders Langhard.

Parex bank has become known as the bank that offers one of the best interest rates on the Swedish market. For now Parex bank has offices in Stockholm, Malmö and Gothenburg and due to further expansion plans in Sweden bank is developing into a full service bank when it will join the clearing system and adopt full service Internet bank. Parex Bank is also looking over the possibilities of offering lending. At the same time the number of products and services has increased after customer demand.

About Parex Bank

With EUR 4.3 billion in assets, Parex Bank is one of the leading banks in the Baltic States with a headquarters in Riga, Latvia. Parex Bank is truly universal bank which offers integrated client services, including lending, payment card services, leasing, asset management and securities brokerage.

Parex bank is represented in 15 countries through its wide network of representative offices, branches and subsidiaries, including branches in Stockholm, Malmo, Gothenburg, Berlin, Hamburg, Munich, Tallinn, Narva and Tartu, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex bankas in Lithuania.

International shareholders base of Parex Bank includes East Capital, Danske Capital, Julius Baer, Firebird Funds, Svenska Handelsbanken AB and other institutional and private investors – in total 63 shareholders.

In 2002 Parex Bank entered Swedish market with opening its representative office in Stockholm. ParexBank opened its first branch in Stockholm in May, 2006, whereas its second office – sub-branch in Malmö was opened in August 2007, followed by sub-branch in Gothenburg in September 2008. Parex Bank was the first bank from the Accession countries of the European Union to open branches in Western Europe. Parex Bank main offer in Sweden is competitive and attractive conditions on savings products.

Parex banka has a Baa3 rating from Moody's Investors Service, a BB+ rating from Fitch Ratings and a BBB rating from Capital Inteligence.

Aug 15, 2008
Azerbaijan company MKT Istehsalat – Kommersiya has settled in full its bonds

The Azerbaijan cotton processor MKT Istehsalat – Kommersiya has settled in full of its bonds on 11 August 2008 in line with the terms of issue. The total volume of the issue was 5 million US dollars, with a maturity of 2 years and a fixed interest rate of 14.4%.

The successful offer to local and international investors was ensured by Parex banka, the leading investment banking service provider and one of the most professional issuers in the Baltic region.

Mr. Ikram Kerimli, the General Director of MKT IK noted, that this has been the first issue of long-term securities for the company, and expressed a hope, that a timely settlement of financial terms with the international investors has laid stable grounds for the credibility of the company in the future.

Commenting on the news, Mr.Mārtiņš Jaunarājs, Senior Vice President, Capital Markets and Investment Banking, Parex banka stated: “The Bank and the clients are very pleased with the co-operation with MKT IK. This case is unique as MKT IK is the first enterprise from Azerbaijan that has raised funds by issuing cross-border bonds. For Parex banka this was the first deal of issuing bonds in Azerbaijan.”

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

About MKT Istehsalat – Kommersiya

MKT IK is one of the major cotton processing companies in Azerbaijan, having controlling stakes in a number of cotton refining factories as well as concluded exclusive cooperation agreements with other companies. Besides, the company owns a refined cotton oil extracting factory and two textile manufactures, producing cotton fabrics. The company also owns the International Trade Center in Baku, the capital of Azerbaijan. The Center consists of two blocks: a 9-storey business center and a 3-storey hotel with 16 rooms. MKT IK customers are producers of fabric and cotton traders from Turkey, USA, Russia and other countries.

Aug 13, 2008
Parex banka retains interest in Russian market

10 – 11 September 2008, Parex banka took part in the 13 th Euromoney Russia and CIS conference in Moscow, Russia. The event annually gathers over six hundred attendees representing financial institutions from Russia, CIS, Europe, Middle East and Asian countries. The Euromoney conference took place in two parallel streams: an exhibition event and discussion panels, which were attended by government representatives, top managers of the Bank of Russia and senior decision makers in the global investment banking industry.

Parex banka was one of the exhibitor banks at the Euromoney conference and was represented by the Capital Markets and Investment Banking Division, headed by the Senior Vice President Martins Jaunarajs, Parex Asset Management Riga and Moscow offices and a representative of Bank's subsidiary AP Anlage & Privatbank.

As part of the exhibition, the Parex team presented the latest and most attractive investment products available at Parex banka and promoted investment opportunities in the Baltic region as well as updated on the Bank's activities in the CIS region and its private banking services.

As one of the speakers in the discussion sessions, Mr. Arvids Sipols, Parex banka's Vice President, took part in the panel entitled CIS and Russian Banking: say goodbye to international finance?, where he and his Russian and European colleagues discussed and analyzed the prospects for the region's banking sector and the impact of global economic conditions on the region.

Meanwhile, the Bank's Senior Vice President Martins Jaunarajs appeared on the Russia's leading business news channel RBC TV and confirmed Parex banka's persistent interest in Russian market despite the liquidity crunch. Mr.Jaunarajs highlighted the uniqueness of Russian market both in its scale and potential, due to which this market will always be interesting to Parex banka and its clients. “The liquidity crunch, on one hand, is bothering us, but on the other hand, it gives us a good opportunity to increase our exposure in this market, because, in a long-term perspective, we believe in Russia's potential,” he said.

In the nearest future Parex banka will be represented at several international conferences including SIBOS, Private Equity in CEE, Baltic Forex Expo 2008, Global Investor Window 2008 and Global Investment and Finance Forum.

About Parex banka

With EUR 4.6 billion in assets Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Aug 4, 2008
Parex pension plans – leaders of profitability in Latvian market

According to the performance results of Latvian pension fund managers as on 31 July 2008, all Parex pension plans since the beginning of 2008 as well as since their  inception have brought positive returns. Parex Active Pension Plan has proved to be the most profitable among the Pension System’s 2nd pillar pension plans since its launch (7 January 2003) with annual return reaching +6.14%, showing the best indice, expressed in interest per annum, among all Latvian pension plans since their inception.

For Global fund markets 2008 has become a rather shaky year, however, just in this complicated market situation Parex Asset Management (PAM) has demonstrated itself as a professional fund manager aimed at gaining profit regardless of the market environment. The situation in the segment of conservative plans also confirms the previously stated as Parex Universal Pension Plan maintains its position in the top three of the most profitable pension plans since inception (return per annum +4.17% since 7 January 2003).

The ability to show persistent profitability is crucial to pension plans. Thus, for instance, even a seemingly unsignificant difference in the average annual yield of pension plans, will result in a tangible difference in the accumulated retirement fund.

Mr.Roberts Idelsons, the President of Parex Asset Management explains the reason for such distinctions of the profitability indices of different pension plans in a complicated market situation: “PAM is performing an active management of its pension plan investment portfolio, modifying the distribution between the risky (shares) and conservative (deposits, bonds) actives, considering the respective market situation. Several other managers are less flexible, allocating the investments in pre-fixed proportions with no modifications even if the market situation demands determined actions. That is why the policy of Parex pension plan management yields better results both short-term and long-term, which may be very well observed when comparing the profitability results.”

Information on the profitability of pension plans and the number of participants: www.manapensija.lv.
More detailed information on Parex pension plans:
www.parex.lv/lv/private/pension/scheme/aktivais_pensiju_plans
www.parex.lv/lv/private/pension/scheme/universal.

About Parex Asset Management

With over USD 1.2 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is the largest investment company in the Baltic Region and one of the most experienced in the Central and Eastern Europe. PAM invests internationally, maintaining a complete investment product range, constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representative offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).


* Fund’s historical profitability does not guarantee the profitability in the future.
Aug 4, 2008
Parex Index - Latvian entepreneurs expect GDP to decrease next year

The Latvian entepreneurs are rather sceptical about the increase of country’s gross domestic product (GDP) next year, admitting that even the decrease of GDP in 2009 is very possible, according to the results of the business activity research Parex Index, conducted in July 2008. Responding to the question: “How possible is the negative increse (ie. decrease in absolute figures) of Latvian gross domestic product in 2009?”, 41,5% of the 750 entepreneurs surveyed believed that it is possible. Out of these 11,2% underlined that the decrease of GDP is very possible, whilst 33,9% felt that it is quite possible.

How possible is the negative increse (ie. decrease in absolute figures) of Latvian gross domestic product in 2009?

Only 5,3% of the respondents believe that the decrease of GDP in 2009 is impossible. 13,1%, in their turn, indicate that the decrease of GDP is quite impossible, while 11,2% consider it very impossible. A comparatively large number of entepreneurs – 25,3% - found it difficult to specify the answer to the given question.

Analysing the results of the poll by location, 20,5% of the entepreneurs based in rural municipalities and countryside belive that the decrease of GDP in 2009 is “very possible”. The same sentiment is shared by 16,9% of entepreneurs based closer to Riga, 15,4% of enterprises with foreign capital and 15,3% of manufacturing enterprises.

Most optimistic views about the increase of GDP next year are voiced by entepreneurs from the Latgale region with 9,5% of entepreneurs ruling out the decrease of GDP. Quite similar opinion is shared by 8,3% of the Zemgale region entepreneurs, who believe that the GDP will not decrease next year. Nevertheless, it is the Zemgale region, where a comparatively large percent of entepreneurs – 43,8% - see the decrease of GDP in 2009 as quite possible.

About Parex Index

The first business activity index in Latvia – Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index describing Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on the poll and the analysis of the opinions of 750 Latvian businesses of different size and from different industries. The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, the value below 50 points depicts pessimism.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jul 31, 2008
Fitch Ratings affirms Parex banka’s rating at BB+

The international credit rating agency Fitch Ratings has affirmed its previous long-term rating of Parex banka at BB+ with a stable outlook. Other previous ratings have also been affirmed at short-term B, individual C/D and support 3.

In a statement, Fitch Ratings notes the strong market position of Parex banka, its leading role as a service provider to non-residents as well as its stable income base. It also confirms that the evaluation of ratings considers risk following a slowing down of the pace of Latvia's economy alongside such factors as operational risk, capital base and the management structure of Parex banka.

In comparison with the end of 2006, the loan portfolio of Parex banka, as at 31 st December 2007, increased by 32% to LVL 1,738 million, while deposits amounted to LVL 1,909 million, an increase of 31%.

At the end of April 2008, Parex banka was the largest bank by deposits with a 19.8% market share and the second largest by assets with a 14.4% market share.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jul 30, 2008
Parex Index - Latvian entepreneurs not to pull out of Latvia

Despite the increase of the production and workforce costs, as well as the sustained high inflation rate, which is reducing the competitive capacity of local entepreneurs, majority of Latvian business people still snub at the possibility to pull their businesses out of Latvia in the nearest future, according to the results of the business activity research Parex Index, conducted in June 2008.  Measuring the possibility of pulling their business or part of it out of Latvia in the nearest future, such possibility was ruled out by 68,42% of the enterpreneurs surveyed.

“Please measure how strong is the possibility of pulling your business or part of it out of Latvia to some other country?”.
The breakdown of the answers received from 750 respondents:

9,6% of the respondents believe that there is a very weak possibility of such scenario, while 5,9% described the possibility as rather weak. Only 2% of the respondents aknowledged, that the possibility of moving the business out of Latvia is very strong, with 5,6% believing - such possibility is rather strong. 8,5% of the respondents, for their part, found it difficult to say if a possibility to pull business to some other country exists.

When analyzing the results by location of the businesses, entepreneurs based closer to Riga are more negative about pulling out of Latvia – 86,4% of these rule out such possibility at all. Entepreneurs in rural municipalities and countryside share similar sentiments – 77,3% of them eliminate the possibility of dislocating their businesses to some other country.

A comparatively stronger possibility to pull business out of Latvia is voiced by managers of enterprises with shared (foreign and local) capital – 10,2% of these respondents believe that such scenario is very possible, while 12,2% described it as rather possible.

About Parex Index

The first business activity index in Latvia – Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index describing Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on the poll and the analysis of the opinions of 750 Latvian businesses of different size and from different industries. The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, the  value below 50 points depicts pessimism.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jul 25, 2008
About changes in Parex Conservative Fund prospect

We would like to inform you, that on ”Parex Asset Management” IPAS Board meeting, which took place on May 29, 2008, were approved substantial changes in Parex Conservative Fund prospect. New name of the fund is – “Parex Local Currency Bond fund”.

The substantial changes of the fund are:

  • Fund's base currency (changed to EUR)
  • Fund's strategy and objective
  • Fund's risks

The investment objective of the open-ended investment fund is to achieve long-term capital growth by investing mainly in Eastern European debt securities of state municipalities, central banks, financial institutions and commercial companies, which are issued mainly in the national currencies of Eastern European countries.

The fund is created for professional and experienced investors, and also for those, who is not familiar with opportunities of financial market, and for investors, interested in receiving profit from capital market of the European Union countries with moderate risk level. The strategy of the fund foresees investments in foreign countries and is related to the risk of non-fulfillment of the obligations by the issuer, currency risk, as well as political and economic risks, which can negatively affect price of the investment certificates. According to the fund strategy, recommended investment horizon is 3 years. Management fee is 1.50% per annum from average value of the fund assets.

About Parex Asset Management

With over USD 1 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is the largest investment company in the Baltic Region and one of the most experienced in the Central and Eastern Europe. PAM invests internationally, maintaining a complete investment product range, when constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan. In 2007 the company was named the “Best European Investment Specialist Firm of the Year” by Funds Europe Magazine.

About Parex banka

With assets exceeding EUR 4.5 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade)
Jul 23, 2008
Today and tomorrow Afanasijs Kuzmins, an athlete supported by Parex banka to compete in the Olympic Games

Today and tomorrow Afanasijs Kuzmins, an athlete representing the Olympic team of Latvia is scheduled to participate in a handgun shooting competition in Beijing. His preparation for the competition was supported by Parex banka.  Afanasijs Kuzmins is one of the most experienced Olympians of Team Latvia – these are being his 8th Olympic Games.

To remind, in 1976 Montreal Olympic Games Afanasijs Kuzmins won the 4th place, in 1980 in Moscow he was the 6th, in 1988 he aced gold in the Seoul Olympics, the 1992 Games in Barcelona brought him the silver medal, in 1996 Atlanta Games he came up 10th, followed by the 8th place in Sydney in 2000, but in Athens in 2004 he ended up in the 14th position.

Parex banka wishes our athlete to achieve high results and to represent his country with honour in Beijing.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jul 8, 2008
Parex Index: Entrepreneurs more pessimistic, yet gradually adjust to the new economic situation

The Latvian entrepreneurs have rated the country's economic situation pessimistically for the third consecutive quarter, and this is the seventh consecutive quarter with ratings demonstrating a downward trend, according to the results of the business activity research Parex Index conducted by Parex banka in cooperation with the public opinion research centre SKDS . Nevertheless, the mood of the entrepreneurs is showing some positive traits indicating a gradual adaptation to the new economic situation.

The last quarter has revealed a slight reduction of the pace at which the sentiments fall, dropping by 2,64 points to 41,41 points. The index has sunk more than eight points below the neutral – 50-point mark - threshold of the evaluation. Over the last seven quarters the general assessment of the entrepreneurs has dropped by almost 20 points.

In September, the Present (38,90 points) and the Future (43,92 points) indexes both were negative, showing a pessimistic outlook not only at the current situation, but also at the vision of the economic developments for the next half-year. The downfall of the Present index has slightly decelerated, which might be indicative of the fact that businesses have started to adjust to the challenging economic environment.

The evaluation of economic situation has become more pessimistic in all 26 groups of entrepreneurs analyzed during the research, and the index showed downfall in all the groups except enterprises located near Riga – this group has indicated the increase of the index by 0,87 points. Here the increase of indexes is observed in evaluating the turnover (+0,95) and the financial situation (+3,80). The most dramatic fall during the last quarter has been experienced by the large-scale enterprises (-7,58), enterprises in the Zemgale region (-6,61) and enterprises with foreign capital (-5,91).

Comparatively positive tendencies during the last quarter have been observed in the construction industry – in separate branches of this industry either a decrease of negative rating tendency or even a slight positive ascent can be noticed, implying that the enterprises working in this segment have adjusted to the current situation and are gradually recovering from the shock. Thus, for instance, in the construction industry, we see a slight increase in the evaluation of economic activity (+0,13), the sharp downfall has been stopped and stabilization in the evaluation of turnover, profitability and financial situation of enterprise can be observed. Although the sentiments of the entrepreneurs are still pessimistic, the tendency of a rapid fall is no longer visible.

Like in previous quarters, we see the decrease of almost all sub-indices (general economic activities of the country, economic activities of industries, evaluation of turnover, profitability, financial situation, and number of human resources and investment volume of enterprises). The only sub-index showing a slight ascent in the last quarter is the assessment of competition in the industry (+0,32). This also is the only sub-index that has stayed above the neutral 50-piont mark (53,28 points) and does not forecast a reduction in competition.

According to the evaluation of entrepreneurs, the country's general economic situation is still the most negatively rated index – only 26,20 points, a fall by 3,74 points over the last quarter. However, the largest decrease in the last quarter could be observed in the evaluation of turnover (-4,51) and the economic activity of the industry (-4,32).

Minor positive stabilization tendencies are observed in the sub-index of investment volume – even though in the last quarter this index has experienced a slight decline (-0,44), no sharp fall detected. Thereby, the enterprises have not fully given up the investment plans and understand the necessity of investments to outlive this economically challenging time and develop in the future.

Analyzing enterprises by industry, the index of investment volume has experienced a fall only in the services industry (-1,27), but the production (+0,80), construction (+0,29) and trade (+0,20) industries, in their turn, have seen some increase of investment volume. Interesting to note, that currently a more positive evaluation of investment volume growth is reported by small enterprises with staff not exceeding 10 people (48,68 points) contrary to a more cautious and pessimistic approach of the large enterprises with staff over 250 people (40,47 points).

About Parex Index

The first business activity index in Latvia – Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index describing Latvian entrepreneurs' subjective appraisal of the economic situation of the State. The index is calculated based on the poll and the analysis of the opinions of 750 Latvian businesses of different size and from different industries. The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, the value below 50 points depicts pessimism.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 ( investment grade ), Fitch Ratings – BB+, Capital Intelligence – BBB ( investment grade ).

Jul 7, 2008
Parex banka strengthens its leading position in the term deposit market of Latvia

Parex banka keeps strengthening its positions in various market segments, one of them being the attraction of term deposits, where the bank has constantly enjoyed the top spot in Latvia. Over the last six months Parex banka's market share of term deposits has increased from 17,9% (as on 31.12.2007) to 18,8% (as on 30.06.2008).

The consolidation of Parex banka's market position is a result of the increase of the number and sums of term deposits banked by private individuals. Term deposits of private individuals account for 38,7% of the total deposit portfolio of Parex banka. In six months the overall volume of term deposits in LVL has increased by 14%, while deposits in EUR have grown by 25%.

Parex banka is persistently working on elaboration and implementation of perspective novelty products, and one of them – Maxi account, a unique savings product on the Latvian deposit market – has been chosen by tens of thousands of Parex banka's clients in the first half-year and is proven to be the most popular savings product among the residents of Latvia. Similar positive dynamics could also be observed in the second half-year in 2007. The deposit share placed on Maxi account takes up considerable 10% of the deposit portfolio of private individuals, which, expressed in absolute figures, account for several tens of millions of LVL.

In comparison to its closest competitors in the banking sector of Latvia, Parex banka offers its clients higher interest rates, which are a subject of a regular review, thus, allowing to maintain them at an attractive level. At present, the potential depositors can turn the world liquidity crunch and its influence on the market to their advantage and make a one-year deposit at an interest rate of 5,5% in EUR and 4% in USD, which is above the base rate of 4,25% in Eurozone and 2% in USA.

Jul 1, 2008
Parex index – for the first time, entrepreneurs have assessed the economic situation in the state as negative

The expectations of Latvian entrepreneurs, assessing Latvia's economic situation since 2004, have experienced a dramatic fall and for the first time have shown pessimistic results, according to the results of the regular business activity research among Latvian entrepreneurs, Parex index, carried out by Parex banka in collaboration with social research company SKDS. In the last quarter entrepreneurs have shown the sharpest decrease in outlook since inception of Parex Index (-4.47), and from cautious optimism has slid down below the neutral mark of 50 points to 47.47.

The research has shown that entrepreneurs have been expecting worsening of the economic situation in the country since the first quarter of 2007, when the index went through the second sharpest fall ever (-3.32 points). Since the beginning of 2007, entrepreneurs' expectations had been constantly going down for five quarters in a row. In the current period it has dropped by 13.42 points.

Still, entrepreneurs' future vision is cautiously positive, which proves a slight but stable optimism still exists. The future index (forecast for next six months) has always been more optimistic than the present index, however we must take into account that even this ratio has been sliding down over past quarters, reaching the lowest figure ever since 2004 – 51.17 points in Q1 2008.

Parex index shows, that the assessment of the economic situation in the last quarter has diminished in all 26 entrepreneurs' groups analysed within the research. Inter alia, the most significant decrease in the last quarter was demonstrated among large enterprises (with over 250 employees), where the index went down by 8.29 points, whereas companies with large turnovers (LVL 1 000 001 and more) have shown a fall in the index by 6.23 points. This shows that the slowdown in economic growth and high inflation has largely affected large companies in the last quarter.

The most significant fall in the index was observable among enterprises with shared domestic and foreign capital (-7.73 points) and production enterprises (-5.81 points). While, the assessment of overall indices stood at the lowest point among rural entrepreneurs (44.97 points) and construction sector companies (44.99). Positive assessment was observable only among enterprises with foreign capital (50.63 points), though this result stands at the lowest point since 2004.

All sub-indices have experienced a certain slowdown , including the assessment of overall economic development, economic activity of the sector, competition in the sector, turn-over of the company, profitability, financial stability, number of employees and investment inflow . Moreover, the values of all sub-indices stood at the lowest point since the inception of Parex Index.

Over the last quarter the sub-index for overall economic assessment has experienced the steepest fall of 9.83 points, continuing the negative trend and reaching the level of 35.41 points. The value of this sub-index has been decreasing since end of 2006 and has the lowest value among all sub-indices.

In the last quarter the only sub-index having a positive outlook was assessment of competition in the field (53.38 points), forecasting increasing competition between enterprises.

About Parex index

The first business activity index in Latvia - Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index, which describes Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on the poll and the analysis of the opinions of 750 Latvian businesses of different size and from different industries. The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, the value below 50 points depicts pessimism.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.34 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jul 1, 2008
Parex bank raises €275 Syndicated loan

Today Parex banka successfully closed a Syndicated Term Loan Facility of EUR 275 million, at a margin of 0.55% over EURIBOR, with an initial maturity date of 364 days. This syndicated loan attracted great interest from international investors and was oversubscribed.

Raiffeisen Zentralbank Österreich Aktiengesellchaft, HSBC Bank Plc., Mizuho Corporate Bank, Ltd. and Sumitomo Mitsui Banking Corporation were the initial mandated lead arrangers of the transaction. The loan was subscribed by 37 financial institutions from 15 countries; 38% or 105 million euros of the funds raised came from Asian investors, while 62% or EUR 170 million was generated by investors from other regions (Europe and North America). The loan attracted six new investors with a total investment of EUR 42.5 million or 15 % of total funds.

Mr. Martins Jaunarajs, CFA, Senior Vice President, Capital Markets and Investment Banking, commented: “At this time of challenging market conditions we are delighted that, with the support of the initial mandated lead arrangers, we achieved such a strong oversubscription. We are also very grateful for investor's trust in the Bank's professional team. The success of this transaction once again shows the confidence of the international banking community in Parex banka and its activities in the Baltic financial market.”

Mr. John Starling, Managing Director, CEEMEA Debt Capital Markets, HSBC Bank plc, said: "The success of this transaction executed in challenging market conditions is a testament of the confidence, which the market is vesting in the management and the strong financial performance of Parex banka."

Over the past ten years Parex banka has been an active borrower in the syndicated loan market, establishing a strong reputation and credibility in international markets.


In the picture: Celebrating the success of the transaction, Parex Banka's representatives together with the Initial Mandated Lead Arrangers (from the left): Alexis Taffin de Tilques (HSBC), Ryuji Nishisaki (SMBC), Roddy Lee (HSBC), Valdis Birkavs (Parex banka), Martins Jaunarajs (Parex banka), Stewart Wakeman (Mizuho Corporate Bank), Robert Denks (Raiffeisen Zentralbank Osterreich ), Isaac Felberbaum (Partner, DentonWildeSapte ).

List of the participating banks:

Initial Mandated Lead Arrangers

  • HSBC Bank plc.
  • Mizuho Corporate Bank, Ltd.
  • Sumitomo Mitsui Banking Corporation
  • RAIFFEISEN ZENTRALBANK ÖSTERREICH AKTIENGESELLSCHAFT

Mandated Lead Arrangers

  • Taiwan Cooperative Bank, Offshore Banking Branch
  • Landesbank Baden-Württemberg, London Branch
  • DZ BANK AG
  • Dresdner Kleinwort
  • Bank of Taiwan London Branch
  • Bank of Baroda

Lead Arrangers

  • BayernLB
  • Erste Bank
  • Landesbank Berlin AG
  • Raiffeisenverband Salzburg
  • Raiffeisenlandesbank Oberösterreich Aktiengesellschaft

Arrangers

  • BMO CAPITAL MARKETS
  • Land Bank of Taiwan, Offshore Banking Branch
  • WGZ Bank AG Westdeutsche Genossenschafts-Zentralbank

Senior Lead Managers

  • Agricultural Bank of Greece SA
  • COMMERZBANK Aktiengesellschaft
  • HYPO ALPE-ADRIA-BANK INTERNATIONAL AG

Managers

  • Taiwan Business Bank, Hong Kong Branch
  • Taiwan Business Bank, Offshore Banking Branch
  • Agricultural Bank of China, Hong Kong Branch
  • Cathay United Bank
  • Chang Hwa Commercial Bank Limited. London Branch
  • The Export-Import Bank of the Republic of China
  • AKA Ausfuhrkredit - Gesellschaft m.b.H.
  • BANCO POPULAR ESPAÑOL, S.A.
  • Bank Austria Creditanstalt (Member of UniCredit Group)
  • Bank of Kaohsiung, Offshore Banking Branch
  • BANQUE BIA
  • BRE Bank SA
  • Caixa Geral de Depósitos, S.A.
  • Landesbank Saar
  • NATIONAL BANK OF EGYPT (UK) LIMITED
  • RAIFFEISENLANDESBANK NIEDEROESTERREICH-WIEN AG
  • Sparebanken Øst

About the Bank

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.5 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallin and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jun 26, 2008
Parex banka together with José Carreras raise charitable donatoins for children battling leukemia in Latvia

The grand total of 25 957 LVL (Latvian Lats) was raised at a charity dinner with the world-famous Spanish tenor José Carreras hosted by Parex banka to help cure children suffering from leukemia in Latvia. The charity dinner was attended by clients and partners of Parex banka.

Fund raising for little leukemia patients will continue also tonight in the Dzintari Concert Hall, where José Carreras will perform. A number of children suffering from leukemia have been invited to see the show as guests.

Carreras is also well known for his humanitarian work as the president of the José Carreras International Leukemia Foundation (La Fundació Internacional Josep Carreras per a la Lluita contra la Leucèmia), which he established following his own recovery from the disease in 1988. The head office of the foundation is located in Barcelona, Spain, but its branches have been established  in the USA, Switzerland and Germany. During the press conference in Latvia, the director of Martin’s Foundation – the Latvian organization providing support to children suffering leukemia – Elita Keiša passed a gift to the Spanish tenor – an applique work handmade by little leukemia patients.

José Carreras is back with a concert in Latvia after a 10-year intermission. Keeping on the tradition, Parex banka is patronizing the event also this time. The tenor will take the stage floor tonight and perform a programme The Mediterranean Passion, which comprises arias from Italian operas along with the Neapolitan and Spanish songs. Carreras will be accompanied by the New Italian Quartet and his loyal pianist Lorenzo Baveja.

“In art and culture we believe in values that last for years and in the long run they only become brighter and more significant. This is absolutely characteristic of José Carreras’s creative work. This is not the artist’s first visit to Latvia – and Parex banka once again supports his tour in our country. I wish unforgettable impressions to all of us – the admirers of the talent of José Carreras!” empahiszed Viktor Krasovitsky, Chairman of the Council of Directors of Parex banka.

Jun 25, 2008
Parex Banka participates in the 5th CIS and Baltic States Bond Congress in Vilnius

Parex banka took part and sponsored the Baltic Bond Market Session in the 5 th annual CIS and Baltic States Bond Congress in Vilnius, Lithuania on 19 – 20 June 2008. Organized by the information agency Cbonds, the Bond Congress is is one of major events devoted to the CIS fixed income market traditionally held in various financial centers in the CIS and the Baltic States. This year the Cbonds Congress focused on challenges and prospects of the bond markets in the CIS and Baltic States, covering also investment attractiveness and risks.

In the Baltic Bond Market session of the Congress, sponsored by Parex banka, Jānis Dubrovskis, Head of Debt Capital Raising, and Andris Kotāns, Senior Portfolio Manager at Parex Asset Management, gave comprehensive presentations, discussed debt markets of Latvia and shared their views on the CIS debt issuers in the Baltic markets. Boriss Kinbers, Head of Brokerage of Parex banka, was invited to take part in the panel of investors and discussed the investment opportunities and ideas in the CIS and Baltic States bond markets. Meanwhile, in the exhibition room Parex team presented the latest and most attractive investment and brokerage products available at Parex banka.

The event gathered ca. 200 representatives of leading banks, investment companies, issuers and institutional investors from the Baltics, Russia, Kazakhstan, Ukraine and other CIS countries. Participants of the 5ht annual CIS and Baltic States Bond Congress acknowledged that the event has become an interesting and important occasion on the CIS and Baltic bond markets, providing an opportunity not only to exchange information, but also to network with colleagues in a pleasant atmosphere.

In the nearest future Parex banka will be represented at several international conferences and exhibitions including SIBOS, Power Engineering in Ukraine – 2008 and KIOGE 2008.

Jun 2, 2008
The issue of investment certificates of the Baltic Distressed Property Fund is launched

Parex Asset Management informs that the issue of investment certificates of the closed-end investment fund Baltic Distressed Property fund starts on July 21, 2008. The main conditions of the first issue are:

  • The volume of the second issue is EUR 25 000 000;
  • The period of initial placement of the Fund's investment certificates shall be 3 months (ending October 20, 2008) or up to the day when all investment certificates offered in the initial placement are sold;
  • The price of an investment certificate is EUR 1000.
  • The minimum investment amount in the Fund is EUR 50 000.

About Parex Asset Management

With over USD 1 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is the largest investment company in the Baltic Region and one of the most experienced in the Central and Eastern Europe. PAM invests internationally, maintaining a complete investment product range, when constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan. In 2007 the company was named the “Best European Investment Specialist Firm of the Year” by Funds Europe Magazine.

About Parex banka

With assets exceeding EUR 4.5 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade)

Jun 2, 2008
Parex banka elects new Council in extraordinary meeting of Shareholders

An extended Council of Parex banka was elected today during the extraordinary Shareholders' meeting of the Bank. In accordance with the decision made during the meeting the following members are elected in the Parex banka's Council for the coming three years – Mr. Guntars Grinbergs, Mr. Valdis Birkavs, Ms. Aija Poca, Mr. Hans Eberhard Berndt, Mr. Gints Poiss and Mr. Viesturs Neimanis.

“Being a member of Parex banka's Council is an appealing challenge for my future carrier. For many years I have obtained experience and knowledge in the Latvian banking sector and now I will be able to use this expertise in the strongest financial institution with local capital in Latvia,” Mr. Viesturs Neimanis, the new member of Parex banka's Council, admitted after election.

Mr. Guntars Grinbergs, Chairman of Parex banka's Council, stated: „Mr. Neimanis is is an expert in almost all fields related to Latvian banking sector. For many years he has been leading a Scandinavian bank in Latvia, obtained extensive expertise in collaboration with foreign investors and international financial institutions. Parex banka is very active in expanding its presence outside the Baltic States, especially Europe; therefore, I am certain that Mr. Neimanis contribution in our organisation will be of great value.”

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

May 20, 2008
Parex Asset Management shortlisted in two categories for the European Pensions Awards 2008

May 2008, Parex Asset Management (PAM) has been shortlisted for two European pension awards in the categories “Investment Manager of the Year” and “Emerging Markets Manager of the Year”, announced by a leading UK based magazine “European Pensions”. The judges who took part in the evaluation process were representatives of European pension associations, pension funds and consultant companies. The award winners will be announced on 17th July 2008 in London.

The “Investment Manager of the Year” award recognises excellence in investment management at a very challenging time in European pensions history, evaluating the professionalism, market dedication and foresight of the investment management company, which is so crucial, provided the turbulent market environment. “The Emerging Markets Manager of the Year” award recognises those managers that have shown a dedication to the emerging markets space with a view to achieving performance often in areas where information flow is in short supply.

“Being shortlisted in two categories for very prestigious European awards in the pensions industry certainly is great news. PAM constantly invests in the growth of this business direction and is a very strong market player in the Latvian pensions industry, outperforming the market players in many products. We are certainly glad that PAM team’s market expertise has been acknowledged by the European Pensions magazine.”- comments Roberts Idelsons, the CEO of Parex Asset Management.

About Parex Asset Management

With over USD 1 billion assets under management, Parex Asset Management, a subsidiary of Parex banka, is the largest investment management company in Latvia. PAM offers investment management and advisory services to domestic and international retail, corporate and institutional clients. The company currently offers clients 13 pension plans in Latvia, Lithuania and Ukraine.

Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Estonia, Russia, Ukraine and Kazakhstan.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.34 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

May 19, 2008
Parex banka and American Express launch campaign Travel around the world

Parex banka in collaboration with American Express is launching a global marketing campaign Travel around the world. During the campaign credit card holders will have an opportunity to use special American Express discounts while traveling around Europe.

The campaign targets 11 European countries – Portugal, Greece, Turkey, Croatia, Israel, Ireland, Slovenia, Cyprus and also Latvia, Lithuania and Estonia. American Express clients will enjoy special discounts in hotels, restaurants, recreation and leisure facilities as well as in shops in these countries.

“Travel around the world is the first large American Express campaign with Latvia included. Now our clientele can take advantage of the American Express Selects client loyalty program not only in Latvia, but also while on holiday abroad. The average discount level in restaurants, leisure, recreation places and shops is up to 10-15%. There is a possibility to get even up to a 50% discount in restaurants in special cases”, emphasizes Andris Riektiņš, Head of Payment cards Division, Parex banka.

The number of American Express credit cards issued in Latvia amounts to 110,000. All cardmembers enjoy benefits from the reward programme Selects offered by American Express. At the moment Selects programme offers are available at 268 places in Latvia. The Selects reward programme includes different partners: 47 shops and retail networks, 9 hotels, 31 restaurant, 11 sports and recreation facilities, 3 cultural places and 4 travel and tourism organizations.

Latvia's participation in the campaign Travel around the world could promote incoming tourism as more than 350,000 American Express clients in the USA and Europe will get information about our country as an exciting tourist destination.

Learn more about the campaign online:  www.americanexpress.co.uk/seetheworld

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.34 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

May 2, 2008
Parex Asset Management registers Russian Equity fund in Germany

Parex Asset Management (PAM), the investment management arm of Parex banka has registered Parex Russian Equity fund for public distribution in Germany. This fund is the third Latvian investment fund in Germany and is now available to investors at all Parex banka branches in Germany.

Mr. Robert Idelson, President and CEO of Parex Asset Management comments: “Russian equity market is rich with investment opportunities in a long term, and the interest of international investors in the equities of Russian companies is constantly growing. Starting today we offer a variety of investment opportunities brought by the Russian market to all our customers in Germany and we are certain that Parex Russian Equity Fund and our long standing experience in Russia will be very well received by international investors”.

Parex Russian Equity fund was registered on March 17, 2004. Since inception, the assets of the Fund have increased up to USD 21.2 mln. The objective of the fund is to achieve long-term capital growth by investing in a diversified portfolio of Russian equity securities. The investment certificates of Parex Russian Equity fund are listed on the Riga Stock Exchange.

About Parex Asset Management

With over USD 1 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is the largest investment company in the Baltic Region and one of the most experienced in the Central and Eastern Europe. PAM invests internationally, maintaining a complete investment product range, when constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan. In 2007 the company was named the “Best European Investment Specialist Firm of the Year” by Funds Europe Magazine.

About Parex banka

With assets exceeding EUR 4.34 billion Parex banka is the largest independent financial institution in the Baltic States. With a track record of consistent growth since being founded in 1992, it offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade)

May 1, 2008
Parex Asset Management wins the tender to manage part of the financial portfolio of the largest private pension plan in Latvia

Today Parex Asset Management (PAM), the leading investment management company in the Baltic States, has signed an agreement with First Latvian Closed Pension Fund ( Pirmais Slēgtais Pensiju Fonds ) to manage part of the financial portfolio of the First Pension Plan.

In November 2007 JSC Pirmais Slēgtais Pensiju Fonds announced the tender for management of a part of the financial portfolio of the largest pension plan in Latvia in terms of assets. The winner was selected based on several criteria, including market expertise, size of assets under management, team professionalism and the company's track record on the pension fund market in Latvia and in Europe. Parex Asset Management has been awarded the mandate and will start portfolio management as soon as the agreement is registered in the Financial and Capital Markets Commission of Latvia.

At the signing ceremony on Wednesday Mr. Robert Idelson, CEO of Parex Asset Management commented: “This agreement highlights the high professionalism of our team and acknowledges our leading position in investment management market in Latvia. We are delighted to work with the largest private pension plan in Latvia as an institutional client, who has entrusted us to manage part of their financial instruments portfolio”.

Anri Leimanis, Chairman of the Board, JSC Pirmais Slēgtais Pensiju Fonds has stated: “The Pension Plan's assets have exceeded 25 million lats and we have started to review the options for improving the portfolio performance whilst retaining our relatively conservative investment strategy, which has proven very successful for the past 10 years. We believe that the Pension Plan's participants will very much benefit from the fact that there will be two financial portfolio managers , competing for best performance results with the same limits established by the Pension Fund. Our long-standing partner Evli Securities IBS will continue to manage another part of our financial portfolio. Having reviewed all proposals submitted by investment management companies in Latvia, and after having evaluated their expertise in the financial markets, we have chosen Parex Asset Management as the second financial portfolio manager”.

JSC Pirmais Slēgtais Pensiju Fonds

JSC Pirmais Slēgtais Pensiju Fonds is the only private pension fund in Latvia with shareholders being employers (Lattelecom Group companies and Latvenergo). The First Pension Plan includes 12,400 members, with over 25,7 million lats accrued on their accounts. JSC Pirmais Slēgtais Pensiju Fonds is the first largest 3-rd tier pension plan of the 17 plans registered in Latvia.

About Parex Asset Management

With over USD 1 billion assets under management, Parex Asset Management, a subsidiary of Parex banka, is the largest investment management company in Latvia. PAM offers investment management and advisory services to domestic and international retail, corporate and institutional clients. Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Estonia, Russia, Ukraine and Kazakhstan.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.5 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Apr 29, 2008
Parex Index poll – economic slowdown negatvely impacts Latvian enterpreneurs

According to the results of the latest Latvian entrepreneurs' business activity research, Parex Index, conducted in March 2008, the majority of entrepreneurs currently have a negative assessment on their business as a result of the slowdown in the Latvian economy. Responding to the additional question “How has the slowdown of the Latvian economy impacted the activity of your enterprise?” 54.1% of the 750 entrepreneurs surveyed assessed the economic deceleration impact as negative.

The Parex Index has seen the most dramatic fall since its inception in 2004 and for the first time has produced pessimistic results when entrepreneurs assess Latvia's economic situation. In the last quarter entrepreneurs recorded the sharpest decrease in their outlook (-4.47) and from a position of ‘cautious optimism', the index is now below the neutral mark of 50 points at 47.47.

“How the slowdown of the Latvian economy has impacted the activity of your enterprise?”


Base: all respondents, n=750

Only 2.7% of the surveyed respondents noted a positive impact from the economic slowdown with approximately one third of respondents, or 31.1%, indicating no impact on their business activity.

The results show that enterprises situated in rural municipalities and regions have experienced the most negative impact from the economic slowdown (61.2%). Businesses with shared foreign capital have not seen such a strong effect with 11.4% of the surveyed respondents even noting a positive effect.

The most significant fall in the index was observed among companies in the construction sector – 56.8% of the respondents stressed the negative impact towards their business activity. Trade sector entrepreneurs gave almost the same negative assessment with 56% of the respondents indicating a negative impact. Service sector entrepreneurs have assessed the economic slowdown as ‘quite positive'. Nevertheless the majority of the surveyed entrepreneurs (52.2%) believed that the economic situation has worsened. Only 3.7% of all entrepreneurs believed that the slowdown in economic growth had had a positive effect on their companies.

About Parex Index

The first business activity index in Latvia - Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index, which collates Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on analysis of the opinions of 750 Latvian businesses of different sizes and across a variety of industries. The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, a value below 50 points depicts pessimism. The full version of Parex index research is available online at www.parex.lv .

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.34 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Apr 28, 2008
Parex Investiciju Valdymas opens a new office in Vilnius

On April 25 Parex Investiciju Valdymas, a Lithuanian subsidiary of Parex Asset management held an event to celebrate the opening of a new office at its recently opened Vertas office building at 16 Gyneju Street in the centre of Vilnius. The event was widely attended by clients, business partners and friends of Parex Asset Management.

As a part of the event, Parex Investiciju Valdymas hosted an exhibition of the photography of the famous Lithuanian photographer Algimantas Aleksandravicius, who was among the guests at the opening ceremony.

During the event the famous Lithuanian mountain climber Vladas Vitkauskas shared his experiences conquering the highest peaks of the world and his greatest challenge – reaching the summit of Everest. "Doubt against belief, commitment against emotion, resilience against pressure - the duel of human emotion and spirit accompanies the climber on his way to the peak. And these are also the feelings that investors have when striving to achieve their goals" - noted Vladas Vitkauskas to the guests.

"Like every business organization, we work to achieve peak performance; our goal is to become the leading provider of professional investment and advisory services for private and institutional clients in Lithuania" - noted Rolandas Sungaila, president of Parex Investiciju Valdymas in his opening remarks.

Parex Investiciju Valdymas was established at the end of 2003 and is the manager of Parex Baltic Sea Equity Fund, as well as it manages the second and third pension pillars in Lithuania.

The new office address of Parex Investiciju Valdymas:
Office Building VERTAS
Gyneju str. 16, LT-01109, Vilnius
LITHUANIA

About Parex Asset Management

With over USD 1 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is the largest investment company in the Baltic Region and one of the most experienced in the Central and Eastern Europe. PAM invests internationally, maintaining a complete investment product range, constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representative offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.34 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Apr 21, 2008
Parex index: Latvian enterpreneurs do not expect inflation decrease before winter

According to the results of the latest Latvian entrepreneurs' business activity research, Parex Index, conducted in March 2008, the majority of entrepreneurs don't believe that inflation will start decreasing until the end of the current year. Responding to the additional question When do you think the inflation rate will start decreasing?, 56.2% of the 750 entrepreneurs surveyed believed, that the inflation would not slowdown until winter 2008.

22.1% of those surveyed considered that a decline in the rate of inflation could start at the end of 2008 and into early 2009. However, 34.1% of the respondents don't expect a decline in inflation to be seen until 2009 at the earliest.

Only 3.9% of the surveyed respondents thought that the inflation rate would start decreasing this summer, with 18.5% of the opinion that inflation would decrease this autumn. Only 0.3% of the respondents gave an optimistic assessment believing that inflation would begin to slow down from this spring.

The results of the survey showed that the most pessimistic assessment towards an inflation decrease was seen among enterprises with shared domestic and foreign capital. 42.9% of these respondents expect the slowdown of inflation later than winter 2008/2009. However, companies with foreign capital were much more optimistic. 6.8% of the surveyed respondents believed, that the rate of inflation would start decreasing by the summer.

About Parex Index

The first business activity index in Latvia - Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index, which collates Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on analysis of the opinions of 750 Latvian businesses of different sizes and across a variety of industries. The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, a value below 50 points depicts pessimism. The full version of Parex index research is available online at www.parex.lv

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.34 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Apr 20, 2008
Parex banka offers its clientele integrated online banking

Parex banka has upgraded its IT system and now offers its clientele integrated online banking. Under its new system customers can both check account activity in every Parex banka's branch in Latvia, Estonia, Sweden and Germany and transfer funds and perform payments from Parex banka's current accounts opened in these countries. This opportunity is provided due to the integration of all current accounts of Parex banka's branches into one information system.

Iļya Shevchenko, Head of the Products and Services Development Division comments: “After the Estonian branch's database was transferred into the centralised Parex banka IT system at the beginning of April, every Parex banka's customer has the opportunity to manage their accounts using the online integrated banking service. Moreover, the system ensures the quick and economically advantageous transfer of funds from each Bank account opened in Latvia, Estonia, Sweden, and also Germany.”

Customers in Latvia, Estonia, Sweden and Germany can use the standard Digipass GO 3 signature calculator or the more comprehensive signature calculator Digipass 700 by accessing Parex online banking. Both devices generate confidential information used for client identification – authorisation codes and electronic signatures. These replace the customer's physical signature and authenticate the customer's order in the message to the Bank. The Digipass device is intended to foster secure communications between the bank and the customer. A code card is also available to the customer as an alternative to Digipass.

Parex banka's payment services available to Parex online banking users should be particularly noted. The service allows the transfer of funds between Parex banka branch accounts on-line. It means that the order to transfer funds from one Parex banka account (e.g. in Latvia) to other Parex banka accounts (e.g. in Estonia, Germany or Sweden) will be processed in a few minutes' time.

About Parex banka

With more than EUR 4,5 billion in assets, Parex banka is one of the most steadily growing Latvian commercial banks. Parex banka offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and securities trading. More than 2600 people are currently employed at Parex banka and its branches. The Bank has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malme, Tallin and Narva, a subsidiary bank AP Anlage un Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner for American Express in Latvia and Lithuania with the rights to issue American Express credit cards. Parex banka has the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Apr 15, 2008
Parex līzings un faktorings Ltd. moves to new office at Skanstes street

On Monday, April 14, Parex banka's subsidiary Parex līzings and faktorings Ltd. starts work in a new office at 13/5 Skanstes street, Riga, LV-1013. The old office will be closed and customers should visit the company at the new address.

Customers are welcome to visit the new office of Parex līzings un faktorings Ltd where they can arrange leases for cars, production equipment or other items or simply discuss possibilities with a financial consultant. Convenient parking is available right in front of the office door. As before both private individuals and legal persons will be provided with all services in one place.

Due to the Bank's regional coverage, customers will be able to undertake quickly and successfully leasing and factoring operations in Parex banka branches all over Latvia.

About Parex banka

With more than EUR 4,5 billion in assets, Parex banka is one of the most steadily growing Latvian commercial banks. Parex banka offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and securities trading. More than 2600 people are currently employed at Parex bank and its branches. The Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malme, Tallin and Narva, a subsidiary bank AP Anlage un Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner for American Express in Latvia and Lithuania with the rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Mar 31, 2008
Managing director of Parex Asset Management Ukraine Denis Moschenko named in the TOP 3 Best managers of investment companies in Ukraine

On March, 19 the results of the survey “TOP 100 - The best top managers in Ukraine” were published in Kiev. The survey is conducted annually by the leading Ukrainian publishing house “Ekonomika”. In the investment management companies sector, Dennis Moschenko, managing director of Parex Asset Management Ukraine (PAM Ukraine), was ranked third.

The rankings distinguished top candidates from more than 700 successful enterprises representing various economic sectors of Ukraine

An assessment was made, taking into account criteria such as reputation and personal qualities, opinion leadership with colleagues and competitors, skills to use modern methods of management, presence of effective strategy in a company and innovation.

Denis Moschenko has served as the managing director of PAM Ukraine since June 2007. He has been employed with Parex Group for over 10 years. Before heading the Ukrainian office of Parex Asset Management, Denis served as the Head of Risk Management at Parex banka.

About Parex Asset Management Ukraine

Parex Asset Management Ukraine was registered in Ukraine in summer 2004. The company was founded by Parex Asset Management, the leading investment company in the Baltic States, with over USD 1 billion assets under management. The value of net assets under management of Parex Asset Management Ukraine constitutes over 450 million UAH. There are two open-end investment funds under PAM Ukraine management - Parex Ukrainian Balanced Fund and Parex Ukrainian Bond Fund and closed-and investment venture fund “Parex Real Estate Ukraine”, as well as target “turn key” funds. In addition, PAM Ukraine administrates and manages the assets of the open pension fund Universal, Khreshchatik and Bank Forum as well as an open-end pension fund Ukrainian Retirement Union.

About Parex Asset Management:

With over USD 1 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is the largest investment company in the Baltic Region and one of the most experienced in the Central and Eastern Europe. PAM invests internationally, maintaining a complete investment product range, constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representative offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan.

Mar 28, 2008
Speech of Valery Kargin, the president and chairman of the management board of SC Parex banka, at the press conference after the annual general shareholders meeting

Good afternoon ladies and gentlemen!

We achieved a 38% growth in our profit for the 2007 reporting, excluding the funds received from the sale of the real estate in 2006. In total, we have earned EUR 57 million.

Our assets grew by 35%, reaching EUR 4.5 billion. The Bank's assets have been growing at 30% annually for the past six years.

In 2007, we paid EUR 34 million in taxes, which firmly secures our place as an important contributor to the welfare of the country.

In 2007, Parex banka's capital and reserves grew by 13% and currently stands at EUR 309 million, as of 31 December.

Last year, the following business segments contributed to the Bank's successful performance:

Loans are a major contributor to the Bank's income with 52% (EUR 19 billion) coming from this segment. The growth of the loan portfolio reached 32% in 2007 and totaled EUR 2.5 billion. The average profitability of our loan portfolio in Latvia stood at 7.5%.

By the end of 2007, loans to Latvian corporates totaled EUR 1 billion 663 million. The industry breakdown is as follows: 29% - real estate development, 15% - transport and communications, 10% - commerce.

The volume of retail and corporate loans, issued to CIS countries, almost doubled in 2007 and has exceeded EUR 163 million. Our subsidiary leasing companies in Russia, Ukraine, Byelorussia, Azerbaijan and now in Georgia have been developing in the similar dynamic manner. The cumulative leasing portfolio in 2007 exceeded EUR 153 million.

Capitalizing on our extensive expertise built over several years, we are constantly increasing our loan portfolio in the transport and energy sectors. The total loans issued to such companies increased from EUR 340 million in 2006 to EUR 360 million in 2007. There are extensive opportunities for portfolio increase in these business areas. Following the slowdown in the Latvian real estate sector, businessmen are actively seeking alternative investment avenues. Moreover, the future plans of the Baltic ports and governments further expands the opportunities open to us.

Retail loans comprised 33% of the Bank's loan portfolio. In 2007, household loans increased by 37%, reaching EUR 826 million. Credit card loans constituted EUR 103 million out of this amount. We are now very close to reaching our goal of becoming the leader in the Latvian credit card market.

Client service fees have contributed to 14% of the total income, or EUR 48 million.

The deposits have grown by one third, reaching EUR 2.7 billion. Retail deposits grew by 36% year-on-year, and stood at EUR 820 million, as of 31 December 2007. We have achieved broad recognition as the provider of excellent savings programs in Latvia as well as abroad.

In 2007, we continued our successful expansion into European markets. In addition to branches in Hamburg and Malmo, two more branches in Berlin and Stockholm opened their doors to clients. We have started issuing payment cards in Sweden, and will be ready to do so in Germany in the near future. Importantly, we have been accepted into the Depositors Protection Fund in Germany, which guarantees all the deposits up to EUR 1.5 million per one depositor, which has stimulated our growth in the German market. In the first two months of 2008 the deposits in Germany reached EUR 115 million. In Sweden the deposits stood at EUR 40 million, as of 31 December 2007.

Our strong track record in Germany and Sweden, which has been further supported by the outstanding performance in the first quarter of 2008, clearly indicates the unlimited possibilities present in Western Europe. It is very possible that we will acquire a bank in Germany in order to reinforce our success in this market.

In 2007, the management's strategy of developing the relationship with our Eastern neighbors has yielded great results. We are trying to maintain the historic relationships with entrepreneurs in Russia, Ukraine, Azerbaijan and other post-USSR countries, as we see enormous profit potential there. In 2007, the deposit volume in Eastern markets grew by over EUR 220 million, or 20%.

Presently, Parex banka is servicing over 465 thousand clients. In 2007, our clientele grew by 65 thousand. 190 thousand individuals and organizations are using our Internet banka daily; in 2007, the number of Internet banka users grew by 4 thousand.

We continue to diversify our funding sources. In 2007, the share of syndicated loans and securities in our funding portfolio increased from 24%, to 26%. During the reporting period Parex banka received three syndicated loans. I would like to quote one of our Initial Mandated Lead Arrangers, John Starling of HSBC Bank, who stated: „The success of this transaction executed in challenging market conditions proves the confidence vested by market in the management and strong financial performance of Parex banka”.

Our activities in the securities and currency markets, as well as successful asset and liability management comprised 33% of our total income, or EUR 113 million. The securities portfolio of Parex banka has increased by more than 8%, thus reaching EUR 790 million.

Our subsidiary Parex Asset Management (PAM) continues to remain the largest investment management company in the Baltics. Last June, PAM was included in the league table of Europe's 400 largest asset managers. In 2007, PAM's commission and fee income increased and comprised EUR 5.6 million, while assets under management amounted to EUR 0.7 billion. Despite increasing competition, the total market share of PAM funds in the Latvian market reached 50%.

A number of Parex funds achieved positive results last year – e.g. our Russian Equity fund posted 36.9% in profit. This is the most profitable fund since its inception. Our Ukrainian Balanced fund produced the highest returns in 2007 compared to all of our funds, posting profits of 75.5%.

Parex pension plans continue to be among the most profitable plans in the long term. Since its establishment, Parex Active pension plan has given its customers annual returns of 6.7%. It remains the second most profitable 2nd pillar pension plan.

In 2007, we also launched Parex Dzīvība, which is our insurance service provider. In just half a year, this company gained a 5% market share. Over the next two years we expect Parex Dzīvība to obtain 15% of the market and expand into Lithuania.

AP Anlage& Privatbank, our subsidiary bank, continues its successful development in Switzerland. It is a relatively small, but profitable business model. Last year its profits comprised CHF 2.4 millions.

That is all about our profit generating models. However, along with our businesses, we are also developing our supportive business units.

The spring of 2007 marked the beginning of economic difficulties not only in Latvia, but all over the world. In response to the changing market conditions, the management of Parex banka made significant investments into refining of our risk management policy. As a result, the centralized Risk Management Division now has 30 highly experienced professionals working for the Bank.

The Bank closely monitors the liquidity risk management. An especially conservative approach to liquidity issues has been implemented since the spring of 2007 and numerous improvements have been made in the field of credit risk management. In order to enhance the management of risks associated with retail loans, the Bank has optimized its scoring system and automatic implementation of the terms of our credit policy.

Traditionally, our Bank has been recognized as a market leader in the AML field. Parex has been included in the list of a few European banks that [are invited to] participate in the meeting with the president of FAFT to discuss the process of implementation of 40 + 9 Recommendations.

The work of our IT management specialists is worth noting specifically. We continue to invest in the safety of the Bank's information systems. High levels of security and the high expertise of our specialists has allowed us to avoid recent precedents of fishing. None of our clients suffered, despite the fact that many clients naïvely started communicating with fishers and disclosed confidential data related to Internet banking.

In conclusion, I would like to say a couple of words about the budget for 2008. We do not expect this year to be an easy one. In Latvia we shall be operating in the environment of increasing competition and the deficit of qualified staff. The average level of gross wages and premiums in the Bank in 2007 has increased by 28%. However, we continue to develop the motivation system to increase the personal incentive of our employees.

Our goals for the next year include:

  • Increasing the loan portfolio by 32%
  • Increasing deposits by 25%
  • By the end of 2008, the Bank's assets will reach EUR 5.2 billion, an increase of 16% year-on-year.
  • Our profit will constitute EUR 48 million.

All of the Bank's management is present here today. Please, feel free to ask questions during the press conference or afterwards:

  • Martins Jaunarajs – Senior Vice President, Head of Capital Markets and Investment Banking
  • Liga Purina – Senior Vice President, Risk Management
  • Janis Skrastins – Head of Legal Sector.
  • Arnis Lagzdins – Head of Compliance.
  • Aleksandrs Kvasovs – Senior Vice President, Customer Service.
  • Guntis Belavskis – Vice President, Customer Service, Retail Banking.
  • Vladimirs Ivanovs – Vice President, Customer Service, CEE and CIS Clients.
  • Normunds Vigulis – Vice President, Treasury.
  • Eriks Brivmanis – Senior Vice President, Finance and IT.
  • Vladislavs Skrebelis – Vice President, Customer Service, Transport and Energy Clients.

Thank you for your attention!

Mar 27, 2008
Mārtiņš Jaunarājs appointed as the Chairman of the council at Parex Asset Management

Mr. Martiņš Jaunarājs, Senior Vice President, Global Head of Capital Markets and Investment Banking division at Parex banka has been elected as the Chairman of the Council at the Bank's subsidiary, Parex Asset Management.

The former Chairman of the Council at PAM was Gene Zolotarev, who has resigned from all his positions within Parex Group in January 2008.

The members of the Council at Parex Asset Management also include Valdis Birkavs (Deputy Chairman of the Supervisory Council, Parex banka), Eriks Brivmanis (Senior Vice President, Finance and IT, Parex banka), Leonids Jamroziks (Head of CIS and CEE representation department, Parex banka), Arvids Sipols (Vice President, Capital Markets, Parex banka) and Roberts Stugis (Vice President, Finance and Accounting, Parex banka).

About Parex Asset Management

With over USD 1 billion assets under management, Parex Asset Management, a subsidiary of Parex banka, is the largest investment management company in Latvia. PAM offers investment management and advisory services to domestic and international retail, corporate and institutional clients. Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Estonia, Russia, Ukraine and Kazakhstan.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.5 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Mar 19, 2008
Parex Dzīvība launches new product - life insurance Combined with a savings account matched to interest rates applied to deposits

Parex Group's affiliated life insurance company Parex Dzīvība (Parex Life) has introduced a new product called “Uzkrājums +”, which combines life insurance cover and savings accounts with interest rates applied to deposits in LVL.

Life insurance combined with savings pegged to deposit interest rate guarantees growth of customers' funds according to interest rate applied to Parex banka's deposits in LVL for 1 month period for retail clients. The variable interest rate currently stands at 5% per annum. By locking-in their investments for 5 years, whilst continuing to make contributions to their savings clients are entitled to resident income tax relief up to 25% of the total amount as long as this does not exceed 20% of the annual gross income.

“This is a reliable and low-risk investment product. It is envisaged that this product will be of interest both to clients looking to increase the tax relief available on their investments as well as to those, who are not currently planning to make savings deposits due to the instability in the global financial markets. Uzkrājums+ gives customers the flexibility to start saving today and make changes to their investment plans in the future, when financial markets stabilize,” comments Raimonds Vesers, Chairman of the Board of Parex Dzīvība.

Parex Dzīvība has set up an online calculator for customers to measure their savings contributions against their insurance quote for Uzkrājums +. The calculator is available at www.parex.lv

Parex Dzīvība was established in December 2007 and offers life insurance service with savings.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.34 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Mar 17, 2008
President of Latvia Valdis Zatlers visits Parex banka’s branch in Berlin

President of Latvia Valdis Zatlers visited Germany on 15 March at the invitation of H.E. Dr. Horst Köhler, President of the Federal Republic of Germany. During his visit, Mr. Zatlers had visited the Berlin's Branch of the Bank, where he met the President of Parex banka Valery Kargin and the operational team of the Branch.

On the evening of 15 March, Messrs Zatlers and Kargin had attended the opening night of Essentia Baltica 2008, in the framework of Baltic-German Cultural Year, at the Berlin Philharmonic Hall. With the support of Parex banka, the world renowned Kremerata Baltica chamber orchestra led by violinist Gidon Kremer delivered its performance during the event.


Mr. Valery Kargin, President of Parex banka, greets H.E. President of Latvia Valdis Zatlers and his spouse

Currently, Parex banka's Branch in Berlin and client service center in Hamburg employ 20 professional banking specialists. 7000 clients (96% of which are German private individuals) are using Parex banka's services in Germany, as at the end of February 2008. The volume of the deposits attracted by the Bank's Berlin and Hamburg operations constituted EUR 120 million, as at 29 February 2008. Parex banka will further expand it's presence in the German financial markets by opening the client service center in Munich.

Presently, Parex banka's German clients can take advantage of the Bank's competitive saving product offering – 5% annual interest rate for deposits in euro and 4.3% interest rate for saving accounts. The Bank will also provide investment products and payment cards in the near future.


H.E. President of Latvia Mr. Zatlers gets acquainted with the operational team of Parex banka's branch in Berlin

The Association of German Banks (Bundesverband Deutscher Banken) has officially accepted Parex banka's branch in Berlin into the Deposit Protection Fund, thus guaranteeing the deposits up to EUR 1.5 million. This decision has been made after the completion of the detailed audit, which yielded favorable assessment of Parex banka's business model and financial results, as well as positive internal ratings at the Association.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.5 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallin and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Mar 10, 2008
Parex Investment Funds now quoted on Bloomberg

As of February 2008 all funds managed by Parex Asset Management (PAM) will be quoted on Bloomberg Professional®, the world’s leading financial information provider. Information will be available to the global investor community on a single information platform on the 19 PAM’s in-house managed open-end and 3 closed-end investment funds domiciled in Latvia, Lithuania, Russia and Ukraine.

It will allow PAM to bring a variety of investment opportunities existing in the Baltics and the CIS countries to investors around the globe. Existing and potential customers will be able to view all factual information i.e. investment objective, portfolio structure, price history and performance. This is a convenient way of obtaining the relevant information in real time from one source.

The Bloomberg Professional® service integrates real-time and historical information on about 5 million bonds, equities, commodities, currencies and funds. Bloomberg electronic library also comprises data on almost every publicly traded company. The Bloomberg Professional community now comprises approximately of 250,000 members from the world's central banks, investment institutions, commercial banks, government offices and agencies, law firms, corporations and news organisations in 125 countries.

Mr. Sergei Medvedev, First Vice-President of Parex Asset Management, said: “We are glad to have all of our funds available via Bloomberg now. Thanks to this we have already started to receive many enquiries from investors in Europe and other regions who are interested in emerging opportunities in Eastern Europe and particularly in Central Asia and Ukraine.“

Parex Asset Management distributes its own investment funds in the Baltic States, Russia, Ukraine, Germany, Sweden and Switzerland. Apart from its in house products, PAM offers customers a range of over 11,000 of the world’s leading investment funds, thereby ensuring the widest possible choice for its clients.

About Parex Asset Management

With over USD 1 billion assets under management, Parex Asset Management, the subsidiary of Parex banka, is the leading investment company in Latvia. PAM offers investment management and advisory services to domestic and international retail, corporate and institutional clients. Through its subsidiaries and representation offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.5 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallin and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Feb 27, 2008
Parex banka donates LVL 83 245.00 to Riga Children’s Clinical Hospital for renovation of parents' house

On Wednesday, February 27, Valery Kargin, President of Parex banka, presented a cheque for LVL 83 245.00 to Dzintars Mozgis, Director of Riga Children's Clinical Hospital. The donated sum will be used to complete the renovation of the parents' house at Riga Children's Clinical Hospital.

Valery Kargin, President of Parex banka, comments: “I would like to thank all of our faithful clients on participating in our charity campaign. Their deposits have made it possible for us to donate such an impressive sum towards the renovation of the parents' house at Riga Children's Clinical Hospital. We truly care for Latvia's future and the donation to this children's hospital is our contribution to the welfare of our country”.

As previously announced, from December 1, 2007 until January 31, 2008 Parex banka held a charity deposit campaign, donating LVL 0.30 for every LVL 100 put on deposit towards the renovation of the parents' house at Riga Children's Clinical Hospital. The amount received during the campaign was donated from Parex banka's funds rather than from the client's deposits. The charity campaign held by Parex banka was launched as part of the newspaper's Diena campaign called Sunny days.

Anna Muhka, Head of Public Relations Division of the newspaper Diena cheerfully comments: “Parex banka's charity deposit is an admirable idea giving such amazing results”. “We are truly thankful to Parex banka's management and Parex banka's loyal clients that have been involved in the Sunny days campaign, raising such incredible financial sum. This donation as well as donations received this winter will allow us to begin all the necessary preparatory works for renovation of parents' house at Riga Children's Clinical Hospital”.

Parex banka's charity deposit campaign has become an established tradition that attracted LVL 52,136.24 last year and LVL 46,304.16 in 2006, which has all been donated to the Riga Children's Clinical Hospital. Over the last three years, Parex banka has donated a total LVL 181 685.40 to the Hospital. Thanks to these donations the Children's Clinical Hospital's library has been built and the renovation of parents' house will now also be completed.

About Parex banka

With EUR 4,5 billion in assets, Parex banka is one of the most steadily growing Latvian commercial banks. Parex banka offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and securities trading. More than 2600 people are currently employed at Parex banka and its branches. The Bank has representative offices, branches and subsidiaries in 14 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallinn and Narva, a subsidiary bank AP Anlage un Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner for American Express in Latvia and Lithuania with the rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).
Feb 1, 2008
Management changes at Parex banka

Parex banka announces today the appointment of Martins Jaunarajs as Acting Head of its Capital Markets and Investment Banking Sector, as from 1 February 2008. Mr Jaunarajs takes over from Gene Zolotarev, who is leaving the Bank.

Mr. Jaunarajs, who has been with Parex banka since 2001, has been a Managing Director in its Investment Banking Division since 2003. During his tenure, Mr. Jaunarajs’s Investment Banking team has arranged a number of significant bond issues, attracted syndicated loans for the needs of the clients and successfully provided M&A advisory on numerous transactions. Having commenced his banking career at AS Latvijas Universālā Banka (now SEB Unibanka) in 1994, he held various positions at Hansabanka between 1997 and 2001. Mr. Jaunarajs has an MBA degree from the University of Latvia and is a Chartered Financial Analyst.

Mr Valery Kargin, President and Chairman of the Management Board of Parex banka said: “We welcome Martins to his new role and look forward to our Capital Markets and Investment Banking Sector showing further growth under his leadership. The Board would like to take this opportunity to thank Gene Zolotarev for all his work over recent years and wish him every success in his future career.”

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.5 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallin and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jan 31, 2008
Parex Index – Entepreneurs expect the inflation rate to exceed 10% this year

Most entrepreneurs expect inflation in Latvia in 2008 to exceed 10%, according to the results of Latvian entrepreneurs’ regular business activity research Parex index, conducted in December 2007. Responding to the question “What inflation rate do you expect in Latvia in 2008?”, 47.3% of the 750 entrepreneurs surveyed believed that it would stay above 13% in 2008, whilst 25.6% felt that it would be in the 11-13% range.

Only 17% of the respondents believe that inflation would be below 10% in 2008, with 14.7% of these forecasting the rate to be 8-10%, 1.9% of them predicting a 6-7% rate and only 0.4% not anticipating the inflation rate to exceed 5%.

Mostly, inflation expectations were seen in large enterprises employing over 250 people (83.3%) – these entrepreneurs expect the inflation rate to exceed 10%, inter alia 50% of respondents believing that inflation will rise above 13%. Entrepreneurs from Latvia’s towns also forecast high inflation this year – 77.2% of these respondents think that the rate will exceed 10%, with 43.9% of these expecting it to be over 13%.

When analyzing the results by sector, trading and service field employees expect to see higher inflation rates compared to construction sector entrepreneurs. 75.3% of respondents from the trading sector and 73.8% of respondents from the service field expect inflation to break the 10% threshold. However, 29.1% of respondents from the construction sector don’t predict inflation to break the 10% barrier.

Domestic capital companies also expect to see rapid price increases in 2008 – 74% of respondents from this group predicting that inflation will exceed 10%. However, 31% of respondents from foreign capital enterprises don’t believe that inflation will be higher than 10% in 2008.

About Parex index

The first business activity index in Latvia - Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index, which describes Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on the poll and the analysis of the opinions of 750 Latvian businesses of different size and from different industries. The index reflects the opinion and the forecasts of the business community on the levelof economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, the value below 50 points depicts pessimism.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.5 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,600 people are currently employed at the Bank and its branches. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malmo, Tallin and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jan 16, 2008
Parex Index – Entepreneurs maintain cautious optimism

When assessing the prospects for economic development in Latvia, entrepreneurs have rated 2007 as the least favourable year since the establishment of the business activity index, Parex Index, in 2004. During the year the index decreased sharply by almost 9 points to 51.93 points, and nearly reached the 50 point barrier, which is regarded as the mark for negative evaluation.

The review shows that the index's value constantly decreased over the course of the year, the first time in the index's history. Furthermore, the businessmen who participate in the review are convinced that 2008 will also be challenging as the present index, at 51.22 points (-2.61), and the future index, at 52.65 points (-2,26), are at their lowest levels since 2004.

From eight sub-indices (assessment of overall economic activity, economic activity of the sector, competition, enterprise's turnover, profitability, financial positions, number of employees, and volume of investments) the assessment of overall economic activity has dropped to 45.24 points, the lowest position of all sub-indices since 2004. This contrasts to the assessment last year, when the overall economic activity sub-index reached the highest position for two quarters in a row, peaking at 64.32 points in the last quarter of 2006. Since then it had experienced a continuous quarter-on-quarter decline.

In the last quarter of 2007 the sub-index of economic activity of the sector dipped below the 50 points level to 49.65 points, which is in itself distinctive as this ratio was relatively stable in previous years, consistently above the 60 points mark. Throughout the year, since the last quarter of 2006, the sub-index of economic activity of the sector has decreased by 13.47 points, including the fall by 4,9 points in the last quarter.

The only sub-index to show growth in the last quarter was the competition assessment sub-index (+1.77), reaching 57.58 points. Entrepreneurs' evaluation gives grounds for conclusion that the decrease in state and sector economic activity might result in competition growth among current entrepreneurs.

Out of 26 groups of entrepreneurs that participated in the survey, only two have shown index increase in the last quarter: large enterprises with over 250 employees (+1.25) and Zemgale region entrepreneurs (+1.03). In turn, entrepreneurs from rural areas have seen the most dramatic fall in the index (-7.03).

Evaluating entrepreneurs by sectors, construction field employees have experienced the most negative tendency: index value in the last quarter decreased by 3.50 points and yearly average by 11.1 points, sliding to 50.38 points. Moreover, despite the 2.34 points decrease, trading sector employees have shown the most confidence among all, with a general index value of 52.88 points.

Unexpected evaluation changes are viewed by looking at companies by capital origin. Foreign capital enterprises have lost their former leading positions. In the third quarter of 2007, for the first time in Parex index history, foreign capital enterprise fell below the evaluation of foreign and domestic capital enterprises. Moreover, they also lost ground to domestic capital enterprises, decreasing by 6.56 points in the third quarter to 50.64 points. On average, the yearly decrease of foreign capital enterprises assessment has comprised 14.44 points. In addition, these companies currently show much pessimism in regards to state general economic activity – only 37.08 points (-10.88).

About Parex index

The first business activity index in Latvia - Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index, which describes Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on the poll and the analysis of the opinions of 750 Latvian businesses of different size and from different industries. The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, the value below 50 points depicts pessimism.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.3 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,500 people are currently employed to work for subsidiaries of the bank. Parex banka has representative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malino, Tallin and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jan 14, 2008
Changes in the management board of Parex Leasing and Factoring

Maris Salzirnis has been appointed as the new Chairman of the Board of Parex Leasing and Factoring Ltd (PLF), starting 18 January 2008.

Mr Salzirnis has highlighted market share growth for PLF in the domestic car-leasing sector as a key objective for the Company as well as service developments in the Latvian regions, utilising the Parex banka branch network.

“In my opinion, Parex leasing has the advantage of foreign branch location, especially in Germany and Sweden, which allows us to offer our leasing services beyond the limits of Latvia. Under the former Chairman, Ilze Zoltnere, PLF has, over the past two years, become a significant player in the local market. Over the next few years we plan to build on this with considerable growth in both, car and industrial leasing”, - said Maris Salzirnis, sharing his future views.

Previously Maris Salzirnis was the Juridical Director of Unilīzings Ltd. He was also Head of Internal Audit Control and Corruption Prevention Division Head at the Road Traffic Safety Department (CSDD). Mr Salzirnis obtained a bachelor's degree in Law from the University of Latvia, and a master's degree in Business Management from Turība University.

Ilze Zoltnere, the previous head of PLF, has taken up a new challenge in the sector of telecommunications.

About Parex Leasing and Factoring

Parex Leasing and Factoring Ltd is a subsidiary of Parex banka, offering a full range of leasing services in the Latvian market since 6 March 2006. According to the data from Association of Leasing Providers, currently the overall PLF portfolio comprises LVL 89.9 mln. In addition, the share of new leasing sales comprised LVL 74.6 mln as at end of December 2007. The total number of leasing objects at the end of 2007 was 5714. Presently, PLF customers are being served by 45 highly qualified leasing specialists. In Riga PLF customers are welcome in our office in Brivibas gatve 224/5.

Jan 8, 2008
American Express extends cooperation agreement with Parex banka and presents an award for excellent results in sales

In December 2007, Valērijs Kargins, the President of Parex banka, and Andris Riekstiņš, Head of the Payment Card Division at Parex banka, visited the head office of American Express cards issuing company in New York. During the visit, Valērijs Kargins and Andris Riekstiņš met with Chairman and CEO of American Express, Kenneth I. Chenault presented an outstanding achievement award to the President of Parex banka in recognition of issuing more than 100,000 American Express credit cards in Latvia. At the same time, an understanding on continued mutual cooperation between Parex banka and American Express was agreed.

In 2005, Parex banka was granted exclusive rights to distribute American Express credit cards in Latvia and today it offers three types of credit cards: American Express Platinum, American Express Gold and Blue from American Express. T hese cards are unique because they are designed to serve local customers at home and abroad to meet their evolving lifestyle needs by providing access to exclusive benefits and services that only these American Express Cards can provide.

From October 2007, a subsidiary of Parex banka in Lithuania Parex Bankas was also granted the right to issue American Express credit cards in Lithuania. The number of credit cards issued in Latvia has exceeded 100,000 in less than three years.


On the photo: Valērijs Kargins, the President of Parex banka with Kenneth I. Chenault, the Chairman and CEO of American Express, holding the crystal award.


On the photo: Andris Riekstiņš, Head of Payment Card Division of Parex banka, Valērijs Kargins, the President of Parex banka, Kenneth I. Chenault, the Chairman and CEO of American Express and Peter Wright, Senior Vice president, EMEA region, American Express.

About American Express

American Express Company is a leading global payments, network and travel company founded in 1850. Since 1996, American Express has been pursuing a strategy geared towards opening its network and its credit card portfolio to third party issuers all over the world. By maximizing its global infrastructure and the strong appeal of the American Express brand, the company aims at increasing the reach of its network even further. To date, American Express has entered into nearly 110 strategic alliances to issue cards in 120 markets.

About Parex banka

Parex banka is one of the most steadily growing Latvian commercial banks with assets exceeding EUR 4.3 billion. The Bank offers its clients integrated services in such areas as credit services, payment cards, leasing, asset management and trading with securities. More than 2,500 people are currently employed to work for subsidiaries of the bank. Parex banka has r epresentative offices, branches and subsidiaries in 15 countries, including branches in Berlin, Hamburg, Stockholm, Malino, Tallin and Narva, a subsidiary bank AP Anlage und Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka is the only business partner of American Express in Latvia and Lithuania with exclusive rights to issue American Express credit cards. Parex banka is assigned the following international ratings: Moody's Investors Service – Baa3 (investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB (investment grade).

Jan 7, 2008
Parex Asset Management hosts the baltic and cis investment days and gathers over 200 investors in Switzerland’s largest cities

Parex Asset Management (PAM), one of the largest investment management companies in the Baltic States organizes its third annual investment seminar in Switzerland entitled Baltic and CIS Investment Days from February 4-6, 2008. The Baltic and CIS Investment Daysare devoted to promoting the numerous investment opportunities in the Baltic and the CIS markets, focusing on the most attractive investment products of the Caspian Sea region, Ukraine and the Baltic states.

The Baltic and CIS Investment Days have grown in size each year and are well received by the Swiss financial community, with over 200 investors attending the events in Zurich, Geneva and Lugano this year.

The Parex delegation includes 7 senior management representatives and is led by Dr. Valdis Birkavs, Deputy Chairman of the Supervisory Council, Parex banka and former Prime Minister of the Republic of Latvia.

During the event, local investment professionals of Parex Asset Management will provide investors with a detailed insight on the Baltic and the CIS macro economic environment, the range of investment products in the region, including Baltic and Ukrainian real estate and equity products. This year there will also be a focus on Ukrainian investment opportunities, with Mr. Sergii Moskvin, the Deputy Head of the State Agency of Ukraine for Investments and Innovations, in attendance.

Robert Idelson, CEO, Parex Asset Management commented: “Holding the Baltic and CIS Investment Days in Switzerland has become an annual event for us. We continue to see increasing interest from Swiss investors in the opportunities that exist in the Baltic and the CIS countries, and so are expanding our customer range in Western Europe. This year we are placing a special emphasis on the real estate and equity investments, as industry professionals attending our presentations show high interest in these particular investment opportunities in Emerging Europe.”

About Parex Asset Management

With over USD 1 billion of assets under management, Parex Asset Management, the subsidiary of Parex banka, is one of the leading investment companies in the Baltic Region and one of the most experienced in Central and Eastern Europe. PAMinvests internationally, maintaining a complete investment product range, whilst constantly tracking the best investment opportunities in each geographic region. Through its subsidiaries and representative offices Parex Asset Management also operates in Lithuania, Russia, Ukraine and Kazakhstan. Parex Asset Management holds the titleof European Specialist Investment Firm 2007by Funds Europe Magazine.

About Parex banka

With EUR 4.5 billion in assets, Parex banka is one of the leading banks in the Baltic States, offering integrated client services, including lending, payment card services, leasing, asset management and securities brokerage. The Bank is represented in 15 countries through its wide network of representative offices, branches and subsidiaries, including a subsidiary in Switzerland, AP Anlage und Privatbank AG.
Parex banka is rated Baa3 by Moody's Investors Service, BB+ by Fitch Ratings and BBB by Capital Intelligence.

Jan 2, 2008
For the Attention of Participants of AS “Parex Open Pension Fund”!

We would like to inform that starting from June 7, 2010 participants of the pension plan who are also a users of Parex online banking will be able to access their statements of the individual pension plan account balance for the year 2009 in the “Statements” section of online banking.

The pension fund will continue to use this type of reporting also in the future and statements will not longer be mailed to the users of online banking. This innovation will allow participants of pension plan to receive their statements on the results of reporting period quicker and it will decrease the administration costs of the pension plan.

AS “Parex Open Pension Fund” announces that it has changed its sworn auditor since 2009 and from now on the auditor is going to be “PricewaterhouseCoopers” Ltd. The sworn auditor’s report on the activity in 2009 contained no objections. Full text of the report is available on the fund’s website in “Annual Finance Report” section or in the office at Republic square 2a, Riga (please notify us of your visit in advance by phone – 6 706 4717).

Sincerely yours, Parex Open Pension Fund

Jan 1, 2008
About Subordinated Bonds of AS Parex banka in the Amount of EUR 5’350’000 with Maturity Date on 8 May 2018

AS Parex banka (registration number 40003074590, domicile: Republikas laukums 2A, Riga, LV-1522, Latvia) announces that all liabilities for subordinated bonds of EUR 5’350’000 issued in November 2008 with maturity date on 8 May 2018 shall be retained in AS Parex banka. In accordance with the prospect for subordinated bonds, disbursements shall take place on 8 May and 8 November of each year, at the rate of 11% per year until 8 May 2013 and from 8 May 2013 until maturity date – at the rate of 12% per year. AS Parex banka reserves the right to retire subordinated bonds for the total amount of the emission before term starting from 8 May 2013.

In case of questions or inquiries, please contact us by e-mail, address: parex@parex.lv, or call our Information Hotline at + 371 6 7779100.

Jan 1, 2008
Parex banka to Give Up its Credit Institution License

Today the Cabinet of Ministers supported the model for Parex banka’s further activity which provides for the Bank’s change of status and resignation from its credit institution license. If Parex banka’s shareholder meeting adopts this decision, the Bank is going to resign from its credit institution license and, in accordance with the restructuring plan approved by the European Commission (EC), it will continue processing assets in order for the State to cover the maximum amount of funds invested in bailing out the Bank. The new functioning model will be introduced after a permit is received from the Finance and Capital Market Commission (FCMC).

The government assessed several possible models for Parex banka’s further activity, including maintaining the Bank’s status, however it was concluded that the most suitable and advantageous option would be restructuring and giving up its credit institution license. This is in line with the goals set forth in the restructuring plan and this enables the State to undertake additional liabilities in the future for meeting regulatory requirements. During the decision making process on the change of status, the fact that Parex banka does not function as a classical bank since August last year, i.e. it does not provide lending services and does not accept deposits from clients, was taken into consideration. Parex banka’s activity is mainly related with asset management since last August therefore, correspondingly to the tasks determined in the restructuring plan, maintaining the Bank’s status is not necessary in order to meet the restructuring plan’s goals. The fact that Parex banka's restructuring plan approved by the EC did not provide for full restoration of the Bank's activity was also taken into account.

Parex banka’s change of status will enable to cut costs related with maintaining its credit institution license. Giving up the license means that meeting requirements for capital sufficiency will no longer be binding for Parex banka and the Bank will no longer have to pay the financial stability duty to the FCMC and make contributions into the deposit guarantee fund. Thus the government will not need to perform further capitalization of State investments which was provided in the restructuring plan in order to ensure the Bank’s activity in accordance with the requirements applied for credit institutions. Similarly the Cabinet of Ministers resolved that capitalization of the funds invested by the Ministry of Finance will take place this year which means investing 19.8 million Lats into the Bank’s share capital. This sum is significantly smaller than the one planned initially. The Bank’s share capital is not increased at the budget expense, it takes place by means of capitalizing the deposits made by the Ministry of Finance instead. Besides, the State does not plan to make any new investments in Parex banka in the future.

The Bank’s shareholder meeting is yet to pass a decision on the Bank’s restructuring. If shareholders resolve to support restructuring, the Bank will have to give up its license in the beginning of the next year and settle liabilities with holders of private deposits. The Bank has already settled its liabilities toward syndicated lenders in the amount of 164 million Lats this year without additional support from the State; this was one of the restrictions in the Bank's change of status. The Bank possesses sufficient amount of funds in order to be able to perform its liabilities and continue its activity without a credit institution license. The structure of Parex banka’s assets and liabilities will be preserved after its change of status. The change of status will not bring along any changes in liabilities for the Bank's clients and, just like previously, the Bank will continue recovering issued loans and ensure maintenance and selling of assets. The composition of shareholders will not change upon the restructuring of Parex banka. Presently the split-up of Parex banka’s shareholders is as follows: LPA – 83.07%, EBRD – 13.61% and 3.32% – minority shareholders.