The bank's supervisory board has adopted an action plan that involves disposal of NKBM's stake in insurer Zavarovalnica Triglav (NKBM owns a majority stake in the insurer) and the acquisition of fresh capital on financial markets, according to Šušteršič.
The statement comes just days after the state had to inject, directly and through two para-state funds, EUR 383m into NLB, Slovenia's largest bank, after the second largest shareholder, Belgian KBC, said it would not take part in the recapitalisation. But Šušteršič was quick to point out that this was a solution of last resort. "We had to provide this temporary solution for NLB, but we're working on keeping this a temporary solution and being able to get the money out of the bank."
"On NKBM our message is clear: the state will rescue the bank only as a last resort, in the event the security of deposits or stability of the banking system is jeopardised; we recommend that the NKBM supervisory board find private solutions for recapitalisation." Asked whether the bank management had free reign in how it structures the capital increase, Šušteršič said the bank had to comply with regulatory requirements. "The government backed the [action] plan, with the recommendation that they stick to the deadlines, accelerate activities and not count [on the state]," he said.
SOURCE: The Slovenia Times
