Latvian Government decides to repay 10% more to the syndicated lenders of Parex banka

Latvian Government has made a decision to repay 30% of Parex banka's total
outstanding syndicated loan by the end of March 2009, exceeding the initial
offer by 10 %. The decision has been made in order to conclude the negotiation
process in the previously accepted terms. 

Nils Melngailis, Chairman of Parex banka's Management Board, comments: “The
amendments to the proposal include the preconditions, including a larger first
payment, suggested by the lenders. These changes were necessary in order to
conclude the negotiation process with the syndicated lenders in the previously
approved terms. After conclusion of the negotiation process the Bank will
continue negotiations with local regulator to lift the restrictions and resume
Bank's operations in full at the closest possible time.” 

The amendments made by the Cabinet of Ministers anticipate that 30% of the
total outstanding loan will be repaid in March 2009, 40% of the loan due in
2010 and the remaining 30% in 2011. 

As previously announced Parex banka submitted a proposal to its syndicated
lenders with an offer to change the terms of their existing loan agreements on
5 February 2009. The particular terms of the proposal involve a 20% or EUR 155
million cumulative interest payment by the end of March 2009, a EUR 387 million
payment in February 2010 and the remaining EUR 232.5 million payment in January
2012. 

Parex banka has two outstanding syndicated loan agreements: the EUR 275 million
credit agreement dated 21 February 2008 and the EUR 500 million credit
agreement dated 29 June 2007. 

About Parex banka:

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. Parex banka is the only partner of
American Express in Latvia and Lithuania, allowed to issue American Express
credit cards. Since 27 February 2008, the Latvian Privatisation Agency is the
majority shareholder of Parex banka. 


Additional information:
Indra Zinkevica
Head of Corporate Communications and PR
Ph. +371 6777 8571 or +371 2913 9449
E-mail: pr@parex.lv
http://www.parexgroup.com/en/