EBRD Interested in Privatisation in Slovenia
The European Bank for Reconstruction and Development (EBRD) has said it was willing to invest several hundred million euros in privatisation projects in Slovenia, where is already has investments worth a total of EUR 588m.
If the government wishes that we take part in the privatisation, we are willing to invest, the head of the EBRD representation office for Slovenia, Francois Lecavalier, told the press in Ljubljana on Thursday.
Lecavalier expects that privatisation procedures would be launched in 12 to 18 months, or else they will not take place at all. The government is doing its job in building a consensus, so it can be expected to take appropriate decisions, he said.
According to him, it is time that the government start trimming down its shareholdings in a gradual and controlled manner. It should let other investors in and create new jobs with this fresh capital, he said.
The EBRD would like to take part in the privatisation of the Nova Kreditna banka Maribor (NKBM), Slovenia's second largest bank, and the fixed-line telco Telekom Slovenije.
The bank's participation in pre-privatisation procedures could be a sign to potential investors that the projects will indeed be carried out, he said.
Lecavalier believes the government is serious about privatising Telekom, a project that has been talked about for years. Indeed, the EBRD was about to sing a pre-privatisation project with the government in 1995, but the deal was cancelled at the last moment.
As for the NKBM, one possible scenario would be an EBRD-supplied capital increase of 5% to 10%, which would give the bank fresh capital. At the same time, the NKBM shareholders management and the EBRD would make a commitment to draft a performance strategy for 12 to 18 months.
This would create a more successful bank; moreover, in the event of a public offering, the state would thus get more money and attract shareholders who would treat their NKBM stakes as a long-term investment, according to Lecavalier.
As for NLB, the country's largest bank, where the EBRD has a 5% stake, Lecavalier reiterated that the EBRD was waiting for an agreement between the state and the strategic partner, Belgian banking group KBC.
The NLB's strategy is to become a major regional player, so it needs fresh capital; the final decision on the EBRD's role depends on the shareholders, he said.
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