"I'll present the proposal to Commissioner Margrethe Vestager on Friday and we'll continue with talks in the coming weeks," Finance Minister Mateja Vraničar Erman told the press after the session.

The minister explained the government rejected "any type of sale of NLB, including via a so-called pre-IPO placement, which was discussed in the last meeting with the commissioner".

She said the details and open issues would be outlined on Friday, while noting "it is expected that the Commission will still examine the possibility for any kind of privatisation procedure".

According to Vraničar Erman, the proposal is about the country's biggest bank paying compensation to the state instead of being forced to sell its Balkan subsidiaries as a sanction envisaged in 2013 if there is no privatisation.

"In essence the bank would be committed to pay, in a specified period, a certain amount into a fund that could secure additional sources for the development of small and mid-sized companies."

The bank would not be allowed to participate in the financial instruments provided by this fund, which would give a competitive advantage to other financial institutions.

The period and amount are subject to negotiations with the Commission, with a reference framework provided by the estimated value of the NLB's Balkan subsidiaries, the minister explained.

"We believe this proposal is in the spirit of the awarded state aid and addresses all key questions that made the privatisation of the bank a key commitment in 2013," she added, noting Slovenia could also be willing to look for other compensation measures related to potential reservations by the Commission.