The European Commission has given the green light for the sale of half of the Slovenian Nova Ljubljanska banka (NLB) by the end of 2018 and then another 25 percent by the end of 2019.
Based on the new package of commitment of the Slovenian authorities to the sale of the largest Slovenian banking group, the Commission concluded that the aid to NLB is in accordance with the EU rules on state aid.
The Slovenian authorities submitted the new package to the Commission in mid-July.
As the EC announced today, Slovenia is firmly committed to the ambitious plan to sell NLB, and the sale of the first tranche of at least 50 percent plus one share will be realized by the end of 2018.
Slovenia extended the deadline for key measures from the program and also offered to assume new obligations as compensation for delaying the sale and restructuring of NLB.
"We welcome Slovenia's commitment to a clear time frame for the sale. Thanks to this, the EC approved the new Slovenian commitment plan for NLB, which will ensure that the bank will be a sustainable long-term player on the Slovenian banking market," said European Commissioner for Competition Margrete Vestager.
The new package of obligations proposed by Slovenia includes strict deadlines for completing the sale of 75 percent minus one share of NLB.
After selling at least 50 percent plus one share by the end of 2018, the Slovenian government will reduce its stake in NLB to 25 percent plus one share by the end of 2019.
If Slovenia does not respect the deadlines, a sales commissioner will be appointed to take over the process.
In the January decision, the commission proposed a trustee for the sale with the aim of further improving the sustainability of NLB.
Among other things, it is also stipulated that NLB does not re-enter the businesses it sold as part of the restructuring plan, such as leasing, and that it strictly observes the ban on acquisitions.
The new package of obligations also includes additional compensatory measures that will improve the sustainability of NLB and help to avoid unnecessary distortions of competition on the Slovenian banking market.
NLB is the largest banking group in Slovenia with a balance sheet of EUR 13 billion at the end of 2017.
So far, it has been recapitalized three times by the state - in 2011 with 250 million euros, in 2012 with 383 million and in 2013 with 1,55 billion euros.
According to the original plans, Slovenia was supposed to sell 75 percent minus one share of NLB by the end of 2017.
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