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BANKING

EEMEA market round up: Parex agrees loan restructuring

Latvia’s Parex bank, which was rescued by the government in December after it hit liquidity problems, has agreed a loan restructuring agreement with foreign creditors. The bank is restructuring two loan facilities worth €775 million in total as part of a state-funded agreement. One loan, for €500 million, was due in June and the €275 million facility was due in February. The new terms means that the bank will stagger repayments to nearly 60 different banks over three years. The first tranche, for €232.5 million, was due last month. Parex is only paying a small restructuring fee but its benchmark borrowing costs will rise more than five times. The European Bank for Reconstruction and Development is to take a €100 million stake in Parex too.