Slovenian banks Probanka and Factor bank gained forcibly administration with the aim of early liquidation. Finance Minister Uros Čufer explained that the government approved guarantees to ensure the liquidity of the two banks.
– The Bank of Slovenia has decided to introduce the supervised liquidation in Probanka and Factor Bank for failure expectations to strengthen the capital adequacy, long-term process of recapitalization and weak liquidity, which continued to deteriorate, the governor of the Bank of Slovenia Bostjan Jazbec said at a news conference,.
For Probanka government has given guarantees amounting to 490 million euros, and for Factor bank in the amount of 540 million euros. With the guarantee will draw loans for liquidity provision and payment of debts to depositors.
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– Banks will operate normally until the end, and the process can take two to three years, said Čufer, and added that at that time the bank will not be able to enter into a new business.
The cost of discontinued operations will primarily be suffered by shareholders, and holders of certain financial instruments, and the remainder will be borne by the state. Factor banka and Probanka for the long time worked hard to strengthen their capital. Probanka´s deadline for 50-million recapitalization expired at the end of September, and Factor banka has been for a long period unsuccessfully searched new investors.
