The resolution stipulates that the capital hike, which excludes pre-emption right by existing shareholders, must be carried out by 25 April, the deadline set by the central bank for the capital increase, and the entire issue of share subscribed if the recapitalisation is to be considered successful.

If the recapitalisation is unsuccessful, the bank will request state aid, Banka Celje said in a press release.

The capital increase is seen by analysts as unlikely given the scale of the bank's problems, which also appears to be the view of the bank's management.

In releasing the business results for 2013, the bank yesterday valued liabilities for subordinated bonds at 5% of their face value, which implies it expects a haircut on shareholders and bondholders.

If Banka Celje is bailed out, it will become the sixth bank in Slovenia to face state-sponsored resolution.

Two small banks have been liquidated and the top three - NLB, NKBM and Abanka - have been recapitalised by the state and nationalised.

Small shareholders announced they would challenge the decision, claiming that the 15-day deadline was unrealistic.

The decision is only about paving the way for state aid and for disowning existing shareholders and holders of subordinate debt, the small shareholders say.