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Home > About Slovenia > Publications > Slovenia News > Slovenia News 16 May 2006 > Govt Confirms Privatisation Plan for Slovenia's No2 Bank

Govt Confirms Privatisation Plan for Slovenia's No2 Bank

Ljubljana, 11 May

The government confirmed the privatisation plan for Slovenia's second largest bank, the Maribor-based Nova kreditna banka Maribor (NKBM), under which the state would keep 25% plus one share in NKBM.

Finance Minister Andrej Bajuk, speaking at a news conference after the cabinet's session on Thursday, explained that the privatisation of NKBM would be carried out in two phases. During phase one the state will sell up to 20% of NKBM shares to a key investor which will be chosen through a public call for bids. The bank's restructuring will follow, with 5% to 10% of NKBM's shares available to private individuals.
In phase two, the government will sell the remainder of the shares through an international tender, Bajuk told the press.
Bajuk said that the plan was in line with previous decisions by the government to retain a controlling share in key companies, such as the NKBM.
The privatisation guidelines also call for appointing a commission on the privatisation, with the privatisation procedure to be completed in 18 to 24 months, Bajuk added.
"The government wants to make the NKBM a pan-Slovenian bank, specialised in the area of doing business with individuals and offering financial support to SMEs," Bajuk stressed.
He, however, could not assess the bank's value, as a valuation is yet to be carried out by an institution to be selected through an international tender.
The privatisation plan for Slovenia's second largest bank was drafted by a group of experts appointed by the government in November 2005.

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