In support of its Slovenian member, VZMD, BETTER FINANCE has closely followed the ongoing case of the bail-in of subordinated bondholders in five Slovenian banks (NLB, NKBM, Abanka, Probanka and Factor Banka) to refinance these struggling institutions. In February this year BETTER FINANCE issued a Press Release in support of VZMD’s legal battle to stop the scandalous wipe-out of Slovenian Bank Bonds that had been mis-sold to investors in the first place.
Now the European court of justice has issued a statement indicating that the arguments put forth in defense of this bail-in do not hold water, stating that EU Member States are not legally bound by EU banking communications, that there is no duty to impose a compulsory write-down of subordinated debt and that disproportionate burden-sharing is not a precondition for securing EU approval of state aid measures.
- Please read the BETTER FINANCE Press Release for more information on these ongoing proceedings.
- For the latest news, please read the Press Release by VZMD taken up on MarketWatch and Yahoo! Finance.