Brussels oks Slovenia's Banka Celje restructuring plan, merger with Abanka Vipa

"The Commission found in particular that the restructuring plan ensures the viability of the merged entity in the long term without requiring further state support," the European Commission said in a statement. "At the same time the plan also mitigates the distortions of competition brought about by the aid granted to the bank."

The restructuring plan comprises of a recapitalisation worth 190 million euro ($237.5 million) together with a transfer of assets to the Slovenian Bank Asset Management Company (BAMC) of 411.5 million euro in gross book value, it added.

According to the restructuring plan and the commitments provided by Slovenia, Banka Celje and, subsequently, the merged entity will limit their scope of activities to their core business in Slovenia.

In December 2013 and January 2014 respectively, the European Commission authorised Slovenia to proceed with two capital injections in favour of Abanka Vipa committed to merge Banka Celje and Abanka and to submit a restructuring plan for the merged entity to the Commission.

On 15 October 2014, Slovenia notified the restructuring plan for Banka Celje until the end of 2015 and for the merged entity from 2016 to 31 December 2019.

($=0.8041 euro)