LJUBLJANA (Slovenia), December 19 (SeeNews) – Slovenia’s Abanka Vipa [LJE:ABKN] said on Thursday the country’s central bank decided that all qualified liabilities of the bank should cease in full, as part of measures for strengthening the stability of the banking system.
The decision relates to Abanka Vipa’s share capital of 7.2 million euro ($9.9 million) divided into 7,200,000 ordinary, registered, freely transferable, no-par-value shares and liabilities under a 120 million euro non-cumulative subordinated loan, from the U.K.-based VTB Bank Europe, which is included in the core capital and supplementary capital I, Abanka Vipa said in a bourse filing.
In order to raise the capital needed to achieve the long-term capital adequacy of Abanka Vipa, the central bank imposed an extraordinary measure on the bank to increase its capital through the payment of new shares by cash contribution by the Republic of Slovenia in the amount of 348 million euro.
After the entry and subscription of new shares on December 18 and the entry of the capital increase in the register of companies, the bank's share capital will total 150 million euro, while the total capital increase will amount to 348 million euro.
Abanka Vipa said it would continue to pay special attention to ensuring the security and stability of operations as well as to implement measures with a positive impact on the capital adequacy ratio.
A restructuring plan of Abanka Vipa is also being prepared in line with the expectations of the European Commission that has approved the capital increase by the state.
“The bank’s restructuring plan will also include the transfer of non-performing claims to the Bad Asset Management Company and a further capital increase of the bank, which will be carried out by the Republic of Slovenia after the final decision of the European Commission,” the statement added.
($=0.7280 euro)