The Slovenia Times

Govt Puts Off Debate on Bad Bank's Mandate Extension


The government suspended the debate on Thursday as not all provisions have been agreed upon within the coalition. The motion is expected to be put on the agenda and confirmed next week, the Government Communication Office said.

Under the planned changes, the operation of the state-owned bad bank would be extended to 2022, five years longer than envisaged by the original act, while it would also receive new tools for companies' restructuring.

The purpose of the extension is to avoid selling assets under pressure and at any price, find adequate buyers and getting higher possible proceeds from the sale.

The changes are part of the package that the government started discussing at the beginning of March, when it appointed new non-executive directors at BAMC and lowered the pay for the management.

They also introduce the possibility of BAMC establishing on its own or together with other institutions a joint-stock company or a limited liability company onto which BAMC could transfer assets or stakes in companies which the bad bank is allowed to restructure.


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