Early this week, VZMD, the Pan Slovenian Shareholders' Association and member of BETTER FINANCE, reported alleged malpractices perpetrated against investors by NLB – Slovenia’s largest bank - to a group of international financial institutions who seem to have unwittingly supported the bank in its activities.
Following the expropriation of its investors in December 2013, NLB is said to now have overstated its equity to meet all capital requirements set by the national supervisor and failed to disclose essential information regarding the latest bond issuance.
In the letter sent to institutions, including UniCredit Bank AG, Allen and Overy LLP, Banque International à Luxembourg and Commerzbank AG, VZMD also stressed the Bank of Slovenia's inaction as national banking supervisor in recognising and tackling any wrongdoing related to these attacks against investors.
VZMD called for an efficient supervision by the Bank of Slovenia and proper sanctions for those responsible.