OREANDA-NEWS. February 16, 2010. During 2009, the economic tendencies continued to affect the financial results of the Parex banka. The bank ended the year with unaudited losses of LVL 107.5 million, of which LVL 103.5 million represent set-asides to cover decreases in the value of the bank’s assets, reported the press-centre of Parex banka.

Since the state took over the Parex banka, much work has been done to optimise the operating costs. Administrative costs were cut substantially in 2009 – personnel costs were down by 30%, travel expenditures – by 93%, advertising, marketing and representation costs – by 85%, transport costs – by 68%, office supply costs – by 61%, and communications costs – by 28%. Total savings as compared to 2008 reached LVL 32 million.

The Parex banka’s loan portfolio at year’s end reached LVL 1.45 billion, and there were LVL 1.54 billion in deposits. Total assets amounted to LVL 2.48 billion, while the capital and reserves at the end of the year was LVL 156.5 million.

During 2009, the Parex banka has paid LVL 40.9 million in interest to the State Treasury for its deposits and to the Privatisation Agency for its subordinated loan.

On February 15, 2010, the Parex Bank will repay the next tranche of its syndicated loan. The payment will amount to LVL 218 million (EUR 310 million). The bank itself will contribute LVL 116 million of the amount, while the State Treasury will provide LVL 102 million by placing deposit with the bank.