Govt to Extend Bad Bank's Mandate until End of 2022
Published on 9 july 2015The state-owned bad bank will therefore exist for five years longer than envisaged by the original act, while also receiving new tools for companies' restructuring.
The changes had been expected to be made for some time, as the need to change certain provisions of the act regulating the operation of BAMC had been pointed out already after the bad bank became operational at the end of 2013.
The changes are part of the package that the government started discussing at the beginning of March, when it appointed new non-executive directors at BAMC and lowered the pay for the management.
According to the proposal, the operations of BAMC will be extended by five years until 31 December 2022. The purpose of the extension is to avoid selling assets under pressure and at any price, find adequate buyers and getting higher possible proceeds from the sale.
The changes also introduce the possibility of BAMC establishing on its own or together with other institutions a joint-stock company or a limited liability company onto which BAMC could transfer assets or stakes in companies which the bad bank is allowed to restructure.
Source: Slovenia Times
