Presentation of BAMC
The Bank Assets Management Company (BAMC) was established in March 2013 as a company owned by Republic of Slovenia with the task of facilitating the restructuring of banks with systemic importance that were facing severe solvency and liquidity problems. By the end of 2013, the two largest banks had been recapitalised by the government and a substantial part of their non-performing assets had been transferred to BAMC. They entered 2014 with strengthened balance sheets and with sufficient capital and liquidity to start new lending and thus facilitate renewed economic growth in Slovenia.
By the end of 2014, in the context of implementing measures to improve the stability of banks, BAMC also took over the nonperforming assets of Abanka and Banka Celje and in order to more effectively manage its assets and consolidate claims against individual debtors, also purchased nonperforming loans from Probanka and Factor banka.
In February 2016 the Government of the Republic of Slovenia as General Assembly of Bank Assets Management Company d.d. agreed with the merger contracts to merge Factor banka and Probanka to BAMC as the acquiring company. With the merger, BAMC is strengthening its role as the key restructuring agent in Slovenia.
Without the transfer of assets to BAMC the recapitalization of the banks would not have been possible. It was an important step towards restoring credibility in the Slovenian banking sector both at home and abroad. International markets responded in the form of a substantial reduction in interest rates for Slovenian debt.
How will BAMC add value to non-performing assets
BAMC's mission is: i) to stabilise the Slovenian financial sector by implementing the bank stability act (ZUKSB-A) through taking over non-performing assets from systemically important banks; ii) to promote confidence in the financial system and to operate in accordance with the highest international standards of governance; iii) to maximise the recovery value of assets acquired; and iv) to facilitate and encourage sustainable corporate restructuring in Slovenia.
Valuable assets should not be sold through »fire sales« in a market where prices are hard to establish. A fundamental idea behind BAMC is that it should be able to restructure assets and sell them when the market has again recovered. When market participants realize that there are no »fire sales« to be expected, prices will stabilize.
BAMC will always act prudently and transparently and will apply arms-length commercial principles. BAMC´s work involves three overlapping phases: it starts with a credit management task followed by an asset management task and finally a divestment task.
BAMC will closely cooperate with other banks and stakeholders cording to the principles of restructuring which have been agreed between all banks in the Slovenian Bank Association.