The amendment gives the Bank Asset Management Company (BAMC), Slovenia’s bad bank, more tools for restructuring company debt. Until now, the bank was allowed to convert claims into loans or sell the assets. From now on, the bank will be able to help these companies secure a loan, issue guarantees to them, recapitalize them or boost its ownership stake. The goal of these measures is to increase the value of the assets before they are sold.

The second change effected by the amendment is the extension of the bad bank’s mandate until the end of 2022. The reasoning behind this measure is that assents should not be sold under pressure, as this could negatively impact the value of the assets.

Oversight will also be tightened. Upon request, the BAMC will have to submit any information or document to the Slovenian Finance Ministry.

A. P. J.; translated by D. V.