Bad Bank Operational in June

The estimated value of bad loans to be transferred from Slovenia's three biggest banks is EUR 3.3bn.

The loans are to be valued at EUR 1.1bn after the transfer, which puts the average transfer cost at 38%. The banks meanwhile have EUR 1.5bn of impairments on account of these loans, Bratušek explained.

Along with the salvaging of banks' non-performing loans, restructuring will also be carried out at several companies, with a special emphasis on the debts of the companies that are expected to reach long-term success after restructuring to a more sustainable business model.

The PM added that the worst loans at the two biggest banks were given out in the 2006-2008, which is the time of the first government of the now opposition Democrats' (SDS) leader Janez Janša.

Bratušek also answered the accusations of SDS deputy group leader Jože Tanko that she was in haste to sell the NKBM bank to conceal her poor performance as the bank's supervisor in 2009-2011.

She stressed that she had never intervened for a single loan during her term as supervisor nor had anyone intervened with her.

Tanko asked her on what basis the government had recently compiled a list of 15 companies slated for privatisation after it had scrapped the previous cabinet's list, arguing that it was not based on the right criteria and methods.

The prime minister said the new list, which still needs to be approved by parliament, had been made based on several criteria, including agreements on joint sale of stocks, which is to bring a higher price.