LJUBLJANA (Slovenia), December 27 (SeeNews) – Slovenia's government has decided to increase the capital reserves held by the country's ‘bad bank’, the Bank Assets Management Company (DUTB), by 50 million euro ($52.3 million), thereby strengthening the bank's capital structure, DUTB said on Tuesday.
DUTB will use the newly-invested funds for early debt repayment, effectively decreasing Slovenia’s guarantee exposure and returning the taxpayers’ investment, the 'bad bank' said in a filing to the Ljubljana bourse.
In addition to increasing capital reserves, the government also passed a decision on the simplified reduction of DUTB’s registered share capital. The registered share capital is to be cut in half, from 208.2 million euro to 104.1 million euro, creating additional capital reserve of 104.1 million euro.
"The capital reserves thus created shall be used to cover the losses from past periods", DUTB noted.
The government also approved the DUTB's business strategy for the 2016-2022 period.
"DUTB’s mission and main strategic plans remain the same as in the previous strategy - to maximize the return on the taxpayers’ investment into the rehabilitation of banks, intensive asset management and performing corporate restructuring in cases where this is economically justifiable", it explained.
DUTB was set up in 2013 as a government-owned company with the task of facilitating the restructuring of banks of systemic importance that were facing severe solvency and liquidity problems.
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