The board and pay package overhaul was confirmed in a recent interview by Finance Minister Dušan Mramor, though he did not go into specifics.

Media reports suggest non-executive directors Mitja Mavko, Carl-Johan Lindgren and Arne Berggren will be replaced by former corporate executives Stojan Petrič, Marko Simoneti and Primož Karpe.

Chief executive Torbjörn Mansson has confirmed he has been asked to stay.

The government was spurred to action by audit and anti-corruption reports showing executive pay at the bad bank is excessive.

While directors' pay will be cut, the government is expected to grant the often voiced demand of the BAMC board to extend the operation of the bad bank by five years to 2022.