The European Commission confirmed on Friday the proposal of the Slovenian government that at least 50 percent of the shares of Nova Ljubljanska Banka (NLB) should be sold by the end of this year, with an additional 25 percent of shares to be sold by the end of next year, so that the money Slovenia invested in the recapitalization of the bank in 2013 would not be considered as unjustified state aid.
>>> Slovenian Parliamentarians for the Protection of NLB from Final Judgments in Croatian Courts
Slovenia was supposed to start the privatization of the largest state bank last year, which the current government did not fulfill, leading Brussels to conduct an investigation in the first half of this year that could have ended in sanctions. This has now been avoided with a new agreement between Brussels and Ljubljana.
According to the new agreement, Slovenia must sell at least 50 percent of NLB shares by the end of this year, and the remaining quarter by the end of next year, in order to remain a minority owner with 25 percent in the bank.
The process will begin this autumn when the initial public offering (IPO) sales procedure will be initiated.
“The sale of NLB is one of the important steps in the bank’s restructuring plan based on which we approved state aid to NLB in 2013 amounting to more than two billion euros,” said European Commissioner for Competition Margrethe Vestager in Brussels, who welcomed Slovenia’s commitment to adhere to a “clear plan” for the privatization of the majority stake in the state bank.
