The European Bank for Reconstruction and Development (EBRD) is no stranger to Slovenian banks. Currently, it is present as a shareholder in Slovenian second largest bank, NKBM, in cooperation with the U. S. fund Apollo, and owned shares in SKB as well as NLB in the past.

According to unofficial information from our sources, which wish to remain anonymous, EBRD is ready to re-purchase a small share in Slovenia’s biggest bank. Yet this would take time, as Slovenia has to come to an agreement with the European Commission if selling off a smaller share than 50% by the end of this year, as had been pledged to the EU, is acceptable.

If the two parties manage to reach an agreement, EBRD would be able to buy – on its own or with a potential partner – a few dozen percent of NLB’s shares as part of an IPO procedure. It appears all sides would welcome the entrance of the European Bank for Reconstruction and Development into the ownership structure. This would ensure temporary stability to NLB, the government would get rid of pressure to sell NLB urgently, which is hanging as a millstone around its neck, whereas the European Commission would probably also welcome EBRD having an equity in NLB.

The European Bank for Reconstruction and Development provides financing in banks and businesses, mostly in developing transitional countries. And since Slovenia has not achieved sufficient progress in corporate management, as experts warn, extra consulting from EBRD could be more than helpful.