On the basis of a new series of commitments proposed by the Slovenian authorities in mid-July, the European Commission on Friday 10th August concluded that the public aid of €2.3 billion granted in 2013 to Nova Ljubljanska Banka (NLB), the largest Slovenian banking group, remains compatible with EU State aid rules.
According to a press statement published following its in-depth investigation, launched in January (see EUROPE 11948), the Commission has announced that Slovenia has undertaken to respect a new timetable for the privatisation of NLB: - a first tranche representing at least 50% plus one share of the public stakeholding will be divested by the end of 2018 at the latest; - the Slovenian government's stake in the capital of NLB will be reduced to 25% plus one share by the end of 2019.
If Slovenia does not keep to these timeframes, an independent agent tasked with overseeing the divestment will be appointed to complete the sale process.
Furthermore, the Slovenian authorities are prolonging commitments already made. NLB will award new loans only if it obtains a minimum yield on them. The banking group will comply with a strict acquisition ban. The closure of further bank branches on the national market will be undertaken. Finally, in order to reinforce its viability, NBL will issue subordinate debt. (Original version in French by Mathieu Bion)