Slovenia’s bad loans ratio keeps falling in August

Slovenia’s bad loans ratio keeps falling in August
By Ivana Jovanovic in Belgrade October 12, 2016

The share of bad loans in the Slovenian banking system fell to 6.7% in August, following the decline to 7.3% in July, after it had remained steady at 8% for the previous three months, the Slovenian central bank Banka Slovenije (BS) said on October 11.

Since 2013, the bad loans ratio in Slovenia has maintained a downward trend. At end-2015 it declined to 9.9% against 11.9% at end-2014 and 13.4% at end-2013. The downsizing of bad loans is a result of BS’s efforts to stabilise the banking sector, an integral part of the Slovenian government's strategy for the restructuring of the financial sector since late 2013.

The value of loans on which repayments have been delayed for over 90 days totaled €2.21bn through August, declining from €2.44bn through July. Through June, bad loans in Slovenian banking system stood at €2.65bn.

The share of bad loans in the corporate sector kept decreasing slightly, reaching 9.3% in August, from 10.7% in July and 12% in June.

The share of bad loans in the household segment in August also shrank compared to previous months, to 3.5% against 3.6% and 4.2% in July and June respectively.

Slovenian bank loans in August totaled €33.14bn.

Slovenia's largest lender Nova Ljubljanska Bank (NLB) is in the process of selling off €800mn worth of non-performing loans NPLs in three tranches, as it cleans its balance sheet ahead of a planned privatisation.

The bank announced on July 19 that it had agreed to sell a package of retail NPLs with a face value of approximately €104mn. It was also reported to have concluded a deal to sell a €396mn package of corporate loans at the end of June. The name of the buyer was not disclosed, but according to local daily Dnevnik the corporate package was sold to US fund Pine River Capital, Swiss buyout fund DDM Group and Czech APS Holding.

Slovenia is a somewhat unusual market in that state-owned banks have already transferred a large part of their NPL portfolios to the country’s bad bank, the Bank Assets Management Company (BAMC). However, aside from NLB, other Slovenian banks are also considering portfolio sales of the bad loans they still hold.

Data

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

Thank you. Please complete your registration by confirming your email address. A confirmation email has been sent to the email address you provided.

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

IntelliNews Pro subscribers click here

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss