Riga - Parex Banka, the Latvian bank recently nationalized by the government of the Baltic state, stepped up its attempts to balance its books Monday by issuing an appeal to bondholders to negotiate new terms for their investments.

After running into liquidity problems, Parex is already trying to renegotiate terms on two large syndicated loans worth 984 million dollars that fall due next year.

A statement released to the Riga stock exchange on Monday morning by Irena Mizisa, Parex's head of investor relations, called on holders of bonds worth 200 million euros (269 million dollars) to get in touch. The bonds in question are due for redemption in 2011.

"The Bank has entered into certain discussions with lenders under its two syndicated loan agreements. The Bank would like to have similar discussions with the holders of the Notes. Any Noteholder interested in participating in such discussions is requested to contact the bank," the statement said.

Parex, the largest home-grown financial institution in the Baltic states, was forced to seek government assistance in November when it ran into liquidity problems as a result of the global credit crunch.

On November 8 the Latvian government of Ivars Godmanis announced its decision to buy a controlling 51 per cent stake in Parex. A month later, the government decided to increase its stake to 84 per cent, and appointed high-profile businessman Nils Melngailis as Parex's new chairman in an effort to improve negotiations with the holders of the syndicated loans, which include Germany's Commerzbank and Austria's Raiffeisen. (dpa)