Govt adopts proposal to transfer bad bank’s assets onto SSH

Ljubljana – The government endorsed a proposal to amend the Slovenian Sovereign Holding (SSH) act that will serve as the basis for transferring the assets of the Bank Assets Management Company (BAMC) onto SSH by the end of the year.

This ensures a smooth transfer of assets, said Finance Minister Klemen Boštjančič at a press conference after the government’s session.

The legislation governing the BAMC stipulates that the bad bank should be wound up by the end of 2022 and its assets and liabilities taken over by SSH, the state assets custodian. Provided more than 75% of the bad bank’s liabilities have been sold, the government can propose this to happen even sooner.

Taking note of the transfer efforts, SSH supervisors said today that the time frame for this had been agreed.

The government’s proposal also envisages that national grid operator Eles’s shareholding in aluminium producer Talum will be transferred under direct state ownership and managed by SSH “in order to manage the company during the time of energy crisis”.

Eles holds some 86% stake in Talum, one of the biggest consumers of electricity in Slovenia, and BAMC some 5%, shows Talum’s annual report for 2021.

Under the proposal, SSH will again manage assets such as DRI, a consulting and engineering company specialised in infrastructure projects, the state-owned forestry company Slovenski Državni Gozdovi and Holding Kobilarna Lipica, the operator of the Lipica stud farm.

The minister said that the transfer would continue to ensure the pursuit of all strategic, economic, environmental and social targets set for these companies by relevant legislation, and that the independence and professionalism of the corporate governance of these companies would be strengthened.

He added that the proposal was aimed at boosting transparency in corporate governance in state-owned companies. Moreover, appointments to supervisory boards in companies under SSH portfolio would be more clearly defined to promote professionalism.