RIGA — To recoup funds, Parex has sold its subsidiary Parex Leasing in Belarus.

The bank has been in constant turmoil, like the country that nationalized the bank, after it almost failed due to the deep Baltic economic crisis.

Though the bank just got $100 for the company in Belarus, which they sold to fellow Latvian bank Rietumu, they were able to withdraw their initial investment of $5.8 million, LETA reported.

“In recent times, the economic crisis and market situation meant that all of the [private_supervisor]bank’s subsidiaries, including the Belarusian leasing and factoring company, were working with a reduced volume of business and asset portfolios, and so the priority for Parex bank was to recover as much of its previously allocated funding as possible, which has been successfully realized,” Indra Zinkevica, director of the bank’s corporate communication department told business newswire Nozare.lv.

The deal also has a clause with a potential payout for Parex depending on the performance of the company between now and 2012. Zinkevica said that the main advantage of the deal is being able to recoup their original investment without losing money.

Rietumu said in a press release that the acquisition would give them a broader scope of business in Belarus.

“The acquisition of Parex Leasing, which is a part of our long-term strategy pursuing the expansion of Rietumu business activities, regional diversification and investing in lucrative assets, will open up new horizons for further dynamic growth of the bank and Rietumu Group and boost our leasing activity in Belarus,” Rietumu CEO and president Alexander Kalinovski said.

Rietumu already owns a majority stake in WestLeasing Group – a leasing company operating in Belarus, Russia and the Ukraine.

Parex offered the subsidiary company, which deals with the lease of road vehicles, to 200 possible buyers, but could not find a better deal.

The bank said that the money they will recover from the company will be used to lend to local business. [/private_supervisor] [private_subscription 1 month]bank’s subsidiaries, including the Belarusian leasing and factoring company, were working with a reduced volume of business and asset portfolios, and so the priority for Parex bank was to recover as much of its previously allocated funding as possible, which has been successfully realized,” Indra Zinkevica, director of the bank’s corporate communication department told business newswire Nozare.lv.

The deal also has a clause with a potential payout for Parex depending on the performance of the company between now and 2012. Zinkevica said that the main advantage of the deal is being able to recoup their original investment without losing money.

Rietumu said in a press release that the acquisition would give them a broader scope of business in Belarus.

“The acquisition of Parex Leasing, which is a part of our long-term strategy pursuing the expansion of Rietumu business activities, regional diversification and investing in lucrative assets, will open up new horizons for further dynamic growth of the bank and Rietumu Group and boost our leasing activity in Belarus,” Rietumu CEO and president Alexander Kalinovski said.

Rietumu already owns a majority stake in WestLeasing Group – a leasing company operating in Belarus, Russia and the Ukraine.

Parex offered the subsidiary company, which deals with the lease of road vehicles, to 200 possible buyers, but could not find a better deal.

The bank said that the money they will recover from the company will be used to lend to local business. [/private_subscription 1 month] [private_subscription 4 months]bank’s subsidiaries, including the Belarusian leasing and factoring company, were working with a reduced volume of business and asset portfolios, and so the priority for Parex bank was to recover as much of its previously allocated funding as possible, which has been successfully realized,” Indra Zinkevica, director of the bank’s corporate communication department told business newswire Nozare.lv.

The deal also has a clause with a potential payout for Parex depending on the performance of the company between now and 2012. Zinkevica said that the main advantage of the deal is being able to recoup their original investment without losing money.

Rietumu said in a press release that the acquisition would give them a broader scope of business in Belarus.

“The acquisition of Parex Leasing, which is a part of our long-term strategy pursuing the expansion of Rietumu business activities, regional diversification and investing in lucrative assets, will open up new horizons for further dynamic growth of the bank and Rietumu Group and boost our leasing activity in Belarus,” Rietumu CEO and president Alexander Kalinovski said.

Rietumu already owns a majority stake in WestLeasing Group – a leasing company operating in Belarus, Russia and the Ukraine.

Parex offered the subsidiary company, which deals with the lease of road vehicles, to 200 possible buyers, but could not find a better deal.

The bank said that the money they will recover from the company will be used to lend to local business. [/private_subscription 4 months] [private_subscription 1 year]bank’s subsidiaries, including the Belarusian leasing and factoring company, were working with a reduced volume of business and asset portfolios, and so the priority for Parex bank was to recover as much of its previously allocated funding as possible, which has been successfully realized,” Indra Zinkevica, director of the bank’s corporate communication department told business newswire Nozare.lv.

The deal also has a clause with a potential payout for Parex depending on the performance of the company between now and 2012. Zinkevica said that the main advantage of the deal is being able to recoup their original investment without losing money.

Rietumu said in a press release that the acquisition would give them a broader scope of business in Belarus.

“The acquisition of Parex Leasing, which is a part of our long-term strategy pursuing the expansion of Rietumu business activities, regional diversification and investing in lucrative assets, will open up new horizons for further dynamic growth of the bank and Rietumu Group and boost our leasing activity in Belarus,” Rietumu CEO and president Alexander Kalinovski said.

Rietumu already owns a majority stake in WestLeasing Group – a leasing company operating in Belarus, Russia and the Ukraine.

Parex offered the subsidiary company, which deals with the lease of road vehicles, to 200 possible buyers, but could not find a better deal.

The bank said that the money they will recover from the company will be used to lend to local business. [/private_subscription 1 year]

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