The Slovenia Times

Govt against additional guarantees for NLB bank


The government took note of SSH's information that the risk stemming from the Yugoslav-era bank deposits in Croatia is an obstacle to the carrying out of NLB privatisation procedures.

It examined potential measures to mitigate the risks "but it established that the measures expected by SSH cannot be provided," reads a press release from the Government Communications Office.

The statement came during a session of the SSH supervisory board that was expected to determine the price range for the forthcoming initial public offering of at least 50% of NLB stock.

The risks stem from deposits by Croatian savers in Ljubljanska banka (LB), the defunct bank from which NLB originates.

NLB is being sued in Croatian courts along with LB over pre-1991 deposits that were returned to Croatian savers by the Croatian state, which then authorised Croatian commercial banks to recover them in court.

The potential liabilities are estimated at around EUR 400m.

Unofficial information obtained by the STA indicates one proposal by the SSH was that Slovenia guarantee for potential liabilities stemming from these lawsuits through the Succession Fund.

Finance Minister Mateja Vraničar Erman is said to have advocated this decision and even offered her resignation when the proposal was not accepted, but Prime Minister Miro Cerar did not accept it.

Neither the Finance Ministry nor the prime minister's office would comment on this information.

The SSH supervisory board was expected to approve the price range for the NLB initial public offering today but the decision has now been deferred, SSH said. Unofficial information indicates the supervisors will be in session again on Thursday.

If consensus is not achieved by the SSH supervisors, the ultimate decision could be made by the government, which by law acts as the sole shareholder of SSH.


More from Nekategorizirano