Trading in Bank Shares, Bonds Suspended on Stock Exchange
The Ljubljana Stock Exchange (LJSE) temporarily suspended trading Monday in all shares and junior bonds of Slovenian banks in order to protect investors. It said that "not all conditions for a fair, orderly and efficient trading in the securities are satisfied."
The suspension affects the shares of NKBM, Abanka and Probanka and the junior bonds of Banka Celje, Factor banka, NKBM, NLB and Probanka.
The LJSE assessed that the key information which would enable an average investor to make an informed investment decisions has not been provided.
The suspension will remain in effect until "a relevant public announcement of issuers" is made or the LJSE decides to resume trading on the basis of a "reasoned request of issuers".
The decision comes less than two weeks before the central bank is due to reveal the results of stress tests at ten banks, including all the banks whose papers are traded on the LJSE.
It is believed the stress tests will show a huge capital shortfall, in particular on the balance sheets of the top three banks by market share, NLB, NKBM and Abanka.
Recent amendments to the public finances act allow the government to recapitalise banks with up to EUR 4.7bn.