| Author (Corporate) | European Commission: DG Communication |
|---|---|
| Series Title | Press Release |
| Series Details | IP/18/482 (26.01.18) |
| Publication Date | 26/01/2018 |
| Content Type | News |
|
Further information: The partial sale of Slovenia's shares in NLB is a key commitment to ensure NLB's long-term viability, on the basis of which the European Commission was able to approve significant State aid of up to €2.32 billion to NLB in December 2013. In May 2017, Slovenia requested a gradual sale of its shares in NLB in two tranches, which the Commission approved. However, after putting the sale of NLB on hold in June 2017, Slovenia did not complete the sale of a first tranche of its shares in NLB before the end of 2017, nor did Slovenia nominate a trustee to comply with the alternative commitment of divesting its Balkan subsidiaries. Since Slovenia failed to comply with its commitments, the aid granted to NLB in 2013 has not been lawfully implemented. Furthermore, the Commission has doubts that Slovenia's proposed alternative measures of December 2017 can be considered equivalent to Slovenia's original commitment. In December 2017, the Slovenian authorities formally notified the Commission of a new commitment package to replace its existing commitment on the sale of 75% of its shares in NLB. This proposal foresees a significant extension of the sales deadline. It also proposes the appointment of an independent trustee that would exercise the State's shareholder rights until the sale has been completed. Finally, Slovenia proposes that all other existing commitments cease to apply as of 31 December 2017. Background information: NLB is the largest Slovenian banking group and had a balance sheet of €12 billion at the end of September 2017. It has received three State recapitalisations, one of €250 million in March 2011, one of €383 million in July 2012. Furthermore, NLB benefitted from a transfer of impaired assets to a State-owned bad bank with an implied aid element of €130 million. The European Commission decided on 26 January 2018 to open an in-depth investigation to assess whether measures proposed by the Slovenian authorities regarding the restructuring of Nova Ljubljanska Banka (NLB) sufficiently compensate for delaying the bank's sale. |
|
| Source Link | http://europa.eu/rapid/press-release_IP-18-482_en.htm |
| Related Links |
|
| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe, Slovenia |
