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Slovenia ploughs ahead with plans to set up its own NAMA

The parliament has approved the bill a second time, despite advice from a council that it may be unconstitutional.

File photo of the Slovenian parliament.
File photo of the Slovenian parliament.
Image: Denis Sarkic/AP

SLOVENIAN PARLIAMENT have voted – for the second time – in favour of legislation to set up the country’s own version of Ireland’s National Asset Management Agency.

The legislation to create a bad bank had already been approved by the national parliament earlier this month, but was put on ice after the ‘state council’ – a non-binding group with similar powers to the Seanad – said it might be unconstitutional.

The repeated support of the parliament overrules this concern, however.

The only the bill can now be stopped is if a petition of 40,000 signatures is submitted to President Danilo Turk asking for a referendum. Some trade unions have already begun collecting the necessary signatures.

If enacted, the new institution being created by Slovenia would act in similar ways to NAMA – buying about €6 billion in non-performing loans from the country’s commercial banks.

The intention is to create a State-owned entity to deal with any impaired loans, while the privately owned banks can go about their normal everyday business.

The plans have the backing of the IMF.

Read: 10 EU states to bring in financial transaction tax legislation

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Gavan Reilly

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