The loan, provided at a 10% fixed annual interest rate and okayed by the European Commission under the condition that NKBM come up with a restructuring plan within three months, was part of the bank's efforts to secure capital adequacy.

The country's second largest bank also sold for EUR 65m its 50.99% stake in insurer Zavarovalnica Maribor as well as pieces of real estate, securing a total capital increase of EUR 182m.

NKBM chairman Aleš Hauc told the STA today that the bank now meets all regulatory requirements. It is moreover planning a major capital increase and thereby a consolidation of the ownership structure, presumably "by the end of June this year".

"It is too early to say what the size of the increase will be, since we still have to wait for the final results for last year," he said.

Hauc added that talks with private investors had also been conducted successfully, however their demands would not have been reconcilable with those of the European Commission, which means the state would have had to provide the money anyway.

This was confirmed by the Finance Ministry, which said it had held serious talks with foreign investors who were ready to provide the full amount of the hybrid loan, but only under conditions that would have been considered illegal state aid.

The deal with the state was clinched on 31 December, which was the deadline set by the banking regulator.

The ministry expects the next step to include a part of the hybrid loan being offered to well-informed investors, which means that part of the funding provided by the state could be paid back.

Talks will also continue with potential strategic investors into NKBM and activities will be continued in cooperation with central bank Banka Slovenije aimed at maintaining the bank's stability.