The Slovenia Times

Banks Need EUR 900M by July


While not setting a precise date for launching the bad bank, it envisages that the transfer of assets could take place in a matter of months.

The procedures for launching the bad bank are ongoing and include the formulation of the method for valuing claims transferred onto the bank and the division of claims.

Prime Minister Alenka BratuĊĦek recently stressed that all tools available under the bad bank act will be utilised to stabilise the banking sector, including state guarantees.

The document also envisages that state-owned banks will have to be provided EUR 900m in fresh capital by July.

This is not a final figure and the government admits that additional recapitalisations may be required depending on the state of the economy and the value of bad assets transferred to the bad bank.

In addition to the banks, the reform programme also touches on the management of state assets, envisaging the Slovenia Sovereign Holding as the manager of state-assets but no longer the owner as enacted by the previous government.

The changes to the relevant legislation are expected to be passed by the end of June, while the government expects the privatisation of the first state-owned companies to be launched by the summer.


More from Nekategorizirano