The Slovenia Times

Bad Bank Ready For Toxic Loans Transfer by December



Mansson, one of three executive directors at the bad bank, told Delo he was concerned over the delay with the transfer of bad loans onto the bad bank.

The first transfers onto the BAMC were initially expected at the end of June, but four months later, the BAMC is still waiting for results of the bank stress tests mandated by the European Central Bank and the European Commission.

Our main goal is to get the banks running again, create jobs and economic growth, Mansson told the paper. He stressed that the four months in from this angle were not a "very big delay".

But he added that while cleaning the bad loans is not a sprint to the finish but more of a marathon, it is nevertheless important to make sure the process is finished as soon as possible.

"Every week that we fail to begin the transfer of toxic assets, the bleeding continues and this costs money", he said, adding that he hoped the European Commission will have enough information to give the green light for the transfer in December.

Mansson stressed BAMC would be ready by then, but said that only the results of the stress tests will show the actual situation in the banks which would also show what time will be right to conduct the transfers.

Mansson also highlighted the issue of BAMC financing, stressing that the bad bank needed a stable and credible source of financing, also in the "international context". He added that the government budget was limited, which means effective means of using public funds would have to be found.

He said the current plan for BAMC to start off with EUR 3.5m in capital was insufficient, adding that a solution is being sought with the government.

Asked whether the country will be able to fix its banking sector without external help, Mansson said Slovenia can still do this alone. "I'm sure that the right political decisions can definitely help solve this," he said.


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