No definite decisions are expected yet, but at least outlines will be known of what Slovenia is willing to offer to the European Commission in exchange for a temporary suspension of privatisation of our largest bank.
The Ministry of Finance gives no official comment about what they are willing to offer in exchange for the extension of the time limit for sale of NLB for three years, before negotiating. Unofficially the representatives of the Ministry and of the European Commission have been negotiating for several weeks on that topic.
The Slovenian party is expected to propose some so-called compensatory measures, including improved corporative management – the members of the NLB supervisory board would be mainly foreigners, perhaps all 9 of them; the extension of ban on purchases or takeovers, and most likely divestment of the presently quite profitable leasing.
As reported by the Finance newspaper, the Finance Minister might also offer a reduced extent of the balance sheet total in exchange for a three-year extension of time limit for sale of NLB. In practice, it would mean closure of certain places of business, and disposal of a half of share in life assurance company Vita. On the other hand, Minister's goal will be also to avoid the sale of profitable subsidiary banks in the Balkans which may result from the discontinuance of sale due to allocated state aid.
Urška Jereb Brankovič, Radio Slovenija; Translated by G. K.