Slovenia May Have to Provide Capital Boost for NLB, TVS Reports
February 10, 2012, 3:13 AM ESTBy Boris Cerni
Feb. 10 (Bloomberg) -- The new Slovenian government may have to provide a 400 million-euro ($531 million) capital boost for Nova Ljubljanska Banka d.d. if the country’s biggest bank fails to attract other investors, TV Slovenija reported, citing Janez Sustersic, who is nominated to become Finance Minister.
NLB must also be allowed to sell stakes in companies it seized during the 2009 recession, Sustersic said at a parliamentary hearing in Ljubljana yesterday, according to the public broadcaster.
Slovenia has the reputation of an unreliable partner among foreign investors as it is known to pull back from deals at the last moment, Sustersic said according to TVS. He plans to “stop such practices,” TVS said.
Croatia’s Agrokor d.d. abandoned its bid to buy Slovenian retailer Mercator Poslovni Sistem after increased opposition from Slovenian officials, which may have prolonged the sale process. NLB was among banks and investors that sought to sell the majority stake in Mercator.
--Editors: Elizabeth Konstantinova, Douglas Lytle
To contact the reporter on this story: Boris Cerni in Ljubljana at bcerni@bloomberg.net
To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net
