With the capital hike, which has received the green light from the Securities Market Agency (ATVP) and is to be secured with newly issued ordinary shares, the bank hopes to strengthen its position in the ongoing crisis.

Abanka Vipa finished 2011 with a EUR 119m loss and reported today a return to red figures in the first six months of 2012 after a minimum profit in the first quarter.

The bank attributes the loss to credit impairments worth EUR 38.9m, which is comparable to the same period last year.

The total assets of the Abanka group stood at EUR 4.2bn at the end of June, a 0.4% decrease on the end of 2011.

The group's as well as the core bank's estimated capital adequacy ratio was at 9.8% at the end of June. The core bank's Tier 1 ratio was at 7.3%.

While remaining focused on its traditional operations, Abanka said it was devoting special attention to liquidity management.

Meanwhile, the capital increase plan, which was confirmed at the May annual general meeting, gives existing shareholders pre-emptive subscription rights. Potential remaining shares will be offered to the public.

Only state-owned insurer Zavarovalnica Triglav has so far announced its definite participation in the capital raise, however only in proportion to its existing stake, which is at almost at 33%