The European Commission has approved public support for Nova Ljubljanska Banka Group (NLB) as temporary aid for banking recapitlization. Slovenia will subscribe €320 million of contingent convertible instruments and grant a capital injection of €382.9 million so that NLB can comply with the European Banking Authority stress test requirements. NLB and Slovenia are to submit an updated restructuring plan to the European Commission within six months.
The Commission has also opened an in-depth investigation into NLB’s first restructuring plan, submitted when Slovenia subscribed to the majority of €250 million in issued shares. The Commission harbors uncertainties that the plan can address the causes of NLB’s distress, allowing it to remain viable after state support. In addition, the Commission doubts that NLB is contributing enough to the costs of restructuring and that the measures sufficiently limit the distortions of competition resulting from the state aid.
Full content: EC Press Release
Related content: Competition Policy, Bailouts, and the Economic Crisis
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI