The central bank has granted the request of the Maribor-based bank Probanka for an extension of a deadline for recapitalisation, giving it until the end of September to secure fresh capital, the bank said Tuesday.
This is the second extension for Probanka, which had originally been ordered by the central bank to beef up its capital by 30 April.
Probanka shareholders (the biggest shareholders include major Slovenian companies) had endorsed a EUR 50m capital increase in April, but the procedure is not slated for completion before December.
The bank said it was currently in talks with five investors potentially interested in supplying fresh capital. When these talks are completed, shareholders will be asked to confirm the modalities of the capital hike.
The 12th largest bank in Slovenia, Probanka reported a EUR 51m group net loss for 2012, almost a tenth of the cumulative bank losses for the year even though its market share by assets barely exceeds 2%.
Source: Slovenia Times
