July 16 (SeeNews) - Slovenia's government said it has adopted a decision to launch an initial public offering (IPO) of state-owned lender Nova Ljubljanska banka (NLB) by the end of 2018.
The government aims to sell at least 50% plus one share in the capital of NLB through an IPO by the end of 2018 and to dispose of a further 25% plus one share in 2019, it said in a statement on Friday.
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Moreover, the government has mandated finance minister Mateja Vranicar to formally submit the decision with the European Commission, it said.
The government also adopted the text of a draft bill aimed at protecting the country's capital investment in NLB from claims in Croatia.
The bill is designed to shield the bank from claims in Croatia stemming from Yugoslav-era deposits of Croatian citizens with the defunct Ljubljanska Banka (LB), Slovenian news agency STA said.
In April, the EU Commission said the aid granted to NLB by Slovenia in 2013 is unlawful because the government has failed to deliver on its commitment to sell the bank by the end of 2017.
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 Commission was able to approve significant state aid to NLB in December 2013, the EC said at the time.
Back then, the Commission approved a 2.321 billion euro ($2.685 billion) state aid to NLB, equivalent to 20% of its RWA as of December 2012, if Slovenia sells 75% minus one share of the lender.
($ = 0.8532 euro)
Nova Ljubljanska Banka d.d. is among the biggest banks in SEE. You can download our SEE Top 100 ranking
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