KBC Groep NV (KBC) won’t provide additional capital to Slovenian lender Nova Ljubljanska Banka d.d., De Tijd reported today, without saying where it got the information.
KBC, which owns 25 percent of NLB, pulled out of a plan to inject 61 million euros ($77 million) and raise its stake in Slovenia’s largest lender to about 34 percent, the newspaper said, adding that the move may be due to the Belgian bank not receiving the European Commission’s approval. NLB reported a loss in 2011 for a third consecutive year on surging bad loans and needs cash to meet the European Banking Authority’s requirements, De Tijd said.
To contact the reporter on this story: Jennifer M. Freedman in Geneva at firstname.lastname@example.org
To contact the editor responsible for this story: James Hertling at email@example.com