The Slovene Sovereign Holding has exchanged half of the Supervisory Board of the biggest Slovene bank and provoked its CEO’s resignation.
In the wake of the forthcoming privatisation of NLB bank, its sole shareholder, the Slovenian Sovereign Holding (SSH), has appointed five new supervisory board members at a general assembly held on 10 February. The changes in the Supervisory Board have raised doubts and protests in Slovenia.
Three of the new members of the Supervisory Board had been employed by NLB before - including during the period when most of the non-performing loans that caused a need for state aid were granted.
According to the Slovene Banking Act the Bank of Slovenia has a right to recall nominated supervisory board members if they are considered not “fit and proper”. The Chamber of Commerce and Industry of Slovenia has required that the SSH as manager of state property disclose the reasons for the latest changes at the top of NLB which occurred in spite of good results in 2015. (NLB reported the highest profit among all state-owned banks and has the best results in decreasing nonperforming loans.)
The chairman of NLB, Janko Medja, stepped down on 5 February amid speculation of a pending replacement. Blaž Brodnjak, a member of the Management of the NLB, has taken over for the time being. The CEO of SSH, Marko Jazbec, who was also a member of the NLB Management Board, did not provide any reasonable arguments for the changes in the Supervisory Board or the intention to recall the CEO.
The changes in the governing bodies of SSH, the Slovene Bad Bank BAMC which occurred in autumn 2015, and now in NLB are not very encouraging for the further privatisation process in Slovenia.
Contact:
Vanda Močnik Kohek
Senior Relationship Manager
Global Securities Services Slovenia
vanda.mocnik@unicreditgroup.si