Parex banka has established a subsidiary, SIA NIF, which will professionally manage assets that are not related to the Bank’s core business.

Parex banka has established a subsidiary, SIA NIF (“Nekustamo īpašumu fonds”, or “Real Estate Fund”), which will professionally manage assets that are not related to the Bank’s core business. This applies to the Bank’s real estate, problematic loans, and expropriated properties. Documents to register SIA NIF were submitted to the Latvian Company Register on September 17.

Subsidiaries to this enterprise are to be established by mid-October, and each of these will deal with a particular area of real estate – commercial properties, land, and housing. This process is in line with the Bank’s confirmed restructuring policy.

Druvis Mūrmanis, Senior Vice President and head of the Corporate and Institutional Banking Sector, has this to say: “Our goal in establishing these companies is to ensure separate and professional management of properties that are not related to the Bank’s basic operations and have been expropriated. These properties will be sold over the course of three to five years, when we expect the real estate market to revive. This will allow us to recover losses which we incurred as the result of stagnation in the real estate market.”