Joint stock company (JSC) Reverta has closed 2014 with stable operational results, having paid to the State Treasury EUR 85.2m during the reporting period, which is by EUR 27.3m more than the previous year. Of this sum EUR 60m is the principal amount and EUR 25.2m is interest on State Aid.
Solvita Deglava, Chairperson of the Board at JSC Reverta, highlights: “Considering the serious challenges, the macroeconomic indicators and the politically economic situation in the country, the accomplishments of the Reverta team last year are extremely valuable and extensive. I could even say that everything possible has been done, pushing the limits of capability and achieving good results. At the same time, we must be realistic as losses will have to be acknowledged.”
Reverta’s performance was positively affected by the activities on the real estate market and in the Latvian economy in general that were observed during the first half of 2014. Thus, for example, one of the most complicated and largest real estate deals in Latvia was concluded by Reverta Reverta selling the Skonto Sports Complex for EUR 13.8m, which covered not only the whole loan commitment but also the maintenance costs of the object.
In the second half of the year Reverta felt the effects of declining macroeconomic indicators caused by Russia and the Russia-Ukraine crisis with the devaluation of the rouble encumbering the loan repayment capacity of clients in Russia and other CIS countries. In addition, the Latvian economy and real estate market were negatively affected by unforeseen changes to the Latvian legislation regarding the procedure for receiving non-residents’ permits, as well as the planned introduction of the walkaway principle that gave rise to opposition from banks and sharply decreased the number of issued mortgage loans.
Reverta’s total assets as of 31 December 2014 were EUR 228.8m, as compared to EUR 339.5m a year before. Since 1 August 2010 to 31 December 2014, the State has received from Reverta a total of more than half a billion euros. This sum comprised payments to the State Treasury in the amount of EUR 313.4m and repayments of the Syndicated Loan (which was State guaranteed) and the accrued interest on the loan in the amount of EUR 244.6m. Approximately EUR 15m has been paid in addition to the State in the form of various taxes and duties. Starting from 1 August 2010 Reverta has paid a total of EUR 17.2m under subordinated liabilities.
Additional information:
Reverta is the largest distressed assets manager in the Baltic countries. The main competencies of the Company are loan restructuring, debt recovery and real estate management. As of 01 August 2010 Reverta has recovered more than EUR 605 m from development and sales of distressed assets between 01 August 2010 and 01 August 2013.
To learn more about Reverta, please visit the Company’s web page: www.reverta.lv.
For additional information contact:
Marita Ozolina
Head of Communications and Marketing Department
Phone: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv
