December 24, 2019 / 4:20 PM / a month ago

Slovenia's Nova Ljubljanska Banka to repay subordinated Tier 2 loan early

LJUBLJANA, Dec 24 (Reuters) - Slovenia’s largest bank Nova Ljubljanska Banka (NLB) said on Tuesday it will repay a 45 million euro subordinated Tier 2 loan early after failing to receive the European Central Bank’s approval to count the debt as additional capital.

“The company may only include the loan in calculation of additional capital ... after obtaining an approval from the ECB,” NLB said in a statement.

“As such approval has not been granted ... and is not reasonably expected to be granted in the near future, the company will exercise the prepayment of the loan in January 2020,” it added.

NLB, which entered into the loan agreement in September, said the repayment of the loan would not jeopardise compliance with regulatory capital requirements.

The ECB was not immediately available for comment. (Reporting by Marja Novak; Editing by Kirsten Donovan)

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