LJUBLJANA Nov 12 Slovenia's two largest banks,
Nova Ljubljanska Banka (NLB) and Nova KBM (NKBM)
, plan to issue new shares in December to boost their
capital in line with European Banking Authority demands.
The Slovenian banking sector is at the heart of speculation
that the country could be forced into a bailout next year,
burdened by recession, rising bad loans in its banks and a
budget deficit expected to reach 4.2 percent of GDP this year.
The country's banks, which are mostly state-owned, are
nursing about 6.5 billion euros ($8.3 billion) of bad debts,
which amounts to 18 percent of GDP.
Unlisted NLB plans to issue 222,647 new shares at 8.35 euros
per share, raising its equity to 12.77 million shares.
NKBM is to issue 50 million euros ($63.6 million) of new
shares and take on a hybrid loan of 150 million euros, also in
December, to raise its Core Tier 1 capital to 9 percent from 7
percent at the end of June.
The bank, which has a market capitalisation of 51 million
euros, will price the new issue at 1.3 euros per share. NKBM
shares eased by 0.7 percent to 1.3 euros by 0912 GMT on Monday,
against a 0.63 percent fall for the blue-chip SBI index
Both banks are state-controlled and both share issues have
to be approved by shareholders in December.
It is unclear whether the government and its companies,
which together own 51 percent of NKBM, will be able to vote at
the shareholder meeting because Slovenia's securities market
agency ATVP scrapped their voting rights in September.
ATVP said the government and its companies were acting in
concert, adding that they have to announce a takeover of the
bank or reduce their joint stake to less than 50 percent to
regain their voting rights.
($1 = 0.7868 euros)
(Reporting By Marja Novak; Editing by David Goodman)