The newsportal Siol was the first to report on the news, saying that non-executive directors had been gathering evidence for a misconduct dismissal of Balogh for a while. Allegedly, he realised today that he only had two options: dismissal or resignation, and opted for the latter.

An audit that examined the sale of the land that was sold to rubber maker Lonstroff through an intermediary, flagged not only Juhart but also Balogh. However, he has continuously denied any wrongdoing.

The BAMC said in a press release after the board meeting that "Balogh resigned for completely personal reasons, that it is time, after three years at the helm of the BAMC and five years in Slovenia, for his personal life to take priority" over his career.

According to the press release, the other two executive directors, Andrej Prebil and Jože Jaklin, will take over the Hungarian's duties temporarily. The handovers will be conducted in the coming days and Balogh will leave his job "in January 2019", the press release says.

Unofficially, executive director Andrej Prebil is willing to take the job, but he does not enjoy the trust of non-executive directors, Siol says.

The contentious land deal is also being investigated by the police. Siol previously reported that the bad bank had sold plots of land in Logatec totalling to 51,000 m2 to realtor Svet Re for about EUR 40 per square metre.

Just days later, Svet Re sold a total of 33,000 m2 to Lonstroff for EUR 90 per m2, making EUR 1m in net profit in the process. The rest of the land was sold months later to logistics company Hoedelmayr at EUR 40 per m2.

The BAMC also said in the press release that it appointed Tomaž Besek board chairman. Besek, who was appointed a non-executive director in place of Juhart has now succeeded his predecessor also in the capacity of chairman.