Parex bank’s British Chief Executive Christopher Gwilliam last week hailed the re-branding of the failed Latvian bank under new name Reverta, an initiative estimated to cost 15,000 lats.
The EU and the Latvian state reportedly had reasonably consented to the proposed change. Parex bank imploded in 2008 and had to be bailed out by the state. The banking collapse is blamed to be the prime reason behind Latvia’s economic hardships and at a time it dragged the country to the edge of bankruptcy.
Regarding choosing the new name, Gwilliam explained that they chose the name as “it symbolises the return of value to our assets, the return of money from borrowers and therefore the return of value to the state.” Economy Minister Daniels Pavluts told reporters the name change was justified by the negative associations that the old Parex name still retains.
“Parex is associated with words like crash, crisis and bad bank,” Pavluts was quoted as saying by the press. The initiative means that the ailing bank has been re-branded for the second time since the initial bailout.
In August 2010, a new state-owned bank called Citadele was launched using Parex’s most valuable assets, with a rump bank retaining the old name.
The same has now transformed into Reverta. On 15 March Latvia’s financial watchdog agreed to withdraw Parex’s banking licence at the company’s request, effectively turning Reverta into an asset management company.