The KNG is opposing the bad bank act, which was adopted last week and envisages the transfer of banks' bad claims onto a state-owned entity in exchange for bonds backed by up to EUR 4bn in state guarantees.

The signatures to be filed today are the first step in the procedure to call the referendum. In the next step, proponents will have to collect 40,000 signatures in order to call the actual referendum. They will have 35 days, starting with the date that needs to be set by parliamentary Speaker Gregor Virant.

The act will also be subjected later today to a potential veto by the National Council, the upper chamber of parliament.

Several councillors, including economist Jože Mencinger, and unionists Branimir Štrukelj, Lidija Jerkič and Drago Ščernjavič, argue that the act creates a serious moral hazard and that it will cause serious damage to state assets.

A veto by the 40-member National Council would lead to parliament having to try to re-pass the act with an absolute majority.

Meanwhile, the bad bank referendum initiative comes after the Trade Union of Energy Workers also filed last week 3,900 signatures to begin referendum procedures on the act on the Slovenia Sovereign Holding.

The holding act, already vetoed by the National Council, envisages the formation of a holding that would manage all state assets, in the estimated value of EUR 9-13bn.