One-Time Church Holdings Largest Toxic Asset at Bad Bank


NLB's gross exposure to the two holdings as at 30 September 2012 is nearly EUR 196m, of which EUR 115.4m to Zvona Ena and EUR 80.5m to Zvon Dva, while NKBM's exposure to Zvona Dva is almost EUR 12.6m and to Zvona Ena a bit over EUR 11.6m.

While claims to the two holdings represent the biggest exposure in the case of NLB, the biggest NKBM asset to end up at the bad bank is the Maribor ski slopes operator ŠC Pohorje, which owes EUR 38.4m. A further EUR 13m in claims to this company have been transferred to BAMC by NLB.

Toxic assets on the list include the ACH and DZS holdings, the Koper-based car parts manufacturer Cimos, Maribor foundry MLM, hardware retailer Merkur and holding Istrabenz, bankrupt builders SCT, Vegrad, Primorje, and Grep, the main contractor in the construction of the Stožice sports complex.

The list includes claims from companies in receivership, those in court-mandated debt restructuring as well as normally operating firms. One such is flag carrier Adria Airways, or the telecommunications provider T-2, and holding Sava.

BAMC, which is required to release data on the loan clients, the persons who approved the loans and the collateral within three months after the law comes into effect, expects to set up an 'information room' to provide access to the whole documentation before the deadline.

Once Slovenia's third largest bank Abanka Vipa is given the green light to transfer non-performing loans to BAMC, the latter will also release data on these assets.

Under the law that expands freedom of information disclosure requirements from the public sector to companies in majority shareholding of the state or municipalities, BAMC also released data on executive pay showing that three non-executive directors earned a combined EUR 198,500 net last year.

Since January BAMC also has three executive directors. The total monthly cost of pay for all six directors amounts to at least EUR 83,000 gross. The list does not however include Torbjörn Mansson, who had temporarily headed BAMC until 9 January and has since been an advisor to the board.

In accordance with the law, the bad bank also disclosed data on consulting and other contracts. These show the consulting contract with the Stockholm-based firm Quartz+Co, which has ties to Mansson, is worth EUR 37,000 a week plus EUR 8,500 a month. BAMC paid a total of EUR 3.6m for consulting contracts in 2013.

The bad bank currently has contracts with four law firms reaching up to EUR 5,000 a month or EUR 180 an hour for a lawyer, while it pays an interpreter EUR 68 an hour.

By end of June Swiss experts will provide consulting services at EUR 24,800 a month, while Estonian financial services experts get EUR 10,350 a month and an IT consulting contract is worth EUR 5,400 a month and communication services EUR 3,850 a month.

Similar data will also have to be disclosed by other state- or municipality-owned firms under legislative changes passed in March, except in cases where that could undermine their competitive advantage.

Meanwhile, a coalition has filed for changes that would also expand disclosure requirements to the non-performing loans that state-owned banks have not transferred to BAMC. The loans concerned are those that will have been granted until the enactment of the changes.