...

Further fate of Azerbaijani Parex Leasing & Factoring to be determined to end of year

Business Materials 19 December 2008 12:22 (UTC +04:00)

Azerbaijan, Baku, Dec. 19 / Trend , N.Ismayilova /The further fate of the Azerbaijani Parex Leasing & Factoring leasing company will be determined after the Latvian Parex Bank, which is the founder of the company, will receive credit lines from international organizations, Andrace Krivans, the head of the representative of Parex Bank in Baku, said.

Parex Leasing & Factoring has suspended financing of new projects due to the influence of the global financial crisis. At present, company continues functioning with the previous projects.

"We expected credit resources from the European Union and World Bank, which will enter the public treasury including money, will also cover our bank, which will lead to reanimation of entire activity", Krivans said.

The issue on further activity of Parex Leasing & Factoring will be permitted already toward the end of the year.

"I think that now everything depends on the situation when it will defrosted with our bank, then Parex Leasing & Factoring will work further", said the Head of the bank representative in Baku.

In November Latvia made a decision about acquisition of control packet of shares in the capital of Parex Bank in order to save it from bankruptcy. The packet with 51% shares of bank acquired by government will be transmitted to the belonging state of "Latvijas Hipotеku un zemes banka". However, on Dec. 3 the decision to take 84.83% shares of bank under control was made at the special session of government. Government assumed guarantying of syndicated credits of bank.

Parex bank is the largest bank in Latvia. According to the data to the end of April 2008, it occupied the first place in the republic by the volume of drawn investments with market share of 19.8% and by second place due to shares with market share of 14.4%.

Parex Leasing and Factoring conducts its activity since March 2005. Parex Bank's leasing companies operate also in Moscow, St.Petersburg, Kiev, Minsk, Tallinn and Vilnius. The authorized capital of bank is paid to $50,000. The leasing portfolio of company to the beginning of August was $46.9mln.

Have any feedback? Contact our journalist at: [email protected]

Latest

Latest