Prof Dr Peter Glavič, a representative of the Civil Society Initiative »Erased Small Shareholders of Nova KBM Bank« and of the NKBM Section at the Pan-Slovenian Shareholders' Association (VZMD), and the VZMD President Kristjan Verbič, MSc, on Tuesday addressed a letter to the President of the European Commission José Manuel Barroso, reminding him of the expropriation affecting 100.000 owners of shares at three Slovenian Banks, 2.000 owners of subordinated bonds, and indirectly also nearly 500.000 citizens (a quarter of the population) who have been saving in pension companies, fund management companies, and insurance companies. They have all been expropriated for nearly 500 million euros in total. The Republic of Slovenia (RS) has in this way, on demand from and in cooperation with the European Commission, plundered the biggest Slovenian banks and robbed their owners!
The two signers have also pointed out that none of the »crisis« countries (Greece, Ireland, Italy, Portugal, Spain) have so far invalidated the property of small investors. The shareholders of the Nova kreditna banka Maribor (NKBM) have been erased contrary to the provisions of the Constitution of the RS and the Protocol to the Convention on Human Rights and Fundamental Freedoms. The State of the Republic of Slovenia has expropriated the owners in two phases. First it oppressively devaluated their deposits (5.6 million shares, each worth 27 €, 151 M€ in total); it forbade them bank recapitalisation, while at the same time it transformed coco-bonds and 10% fixed interest on them into shares: 100 million shares each worth 1 €, and 185 million shares each worth 1,3 cents, in total 285 million shares for 102,4 M€! The book value of a share has thus dropped from 5, 37 € to 0, 76 €, and the market value has dropped to only 0, 10 €. The small investors have thus practically been pushed out of the ownership, and a 92% bank ownership has been established which then, with a special law which so far none of the EU countries has adopted, erased their shares!
Last year's review and estimation of bad debts is also extremely questionable, which is also true for the conditions of transmission on the 'bad bank' whose criteria have been dictated by the European Commission, since the European Central Bank has at that time asked The European Banking Authority (EBA) for the criteria which, at that time, had not yet been formally approved. There is a difference between the valid international accounting standards and the forced illegal criteria, and because of this difference shareholders and the owners of subordinated bonds have been expropriated – the procedure was in a stark contrast with the basic principles of the rule of law.
The Government of the RS and the Bank of Slovenia have both claimed that the European Commission is responsible for the unique expropriation of shareholders, but in the notice written by the European Commission there is no word about the necessity of expropriating shareholders. Even those countries which have accepted a bailout (Greece, Portugal, Ireland, Spain) have not erased shares and subordinated bank bonds. Germany, Belgium, Austria and other member states have even recapitalised private banks themselves, without expropriating the existing shareholders, and the European Commission did not consider it helpful. Spain and the Netherlands even had to cancel the decisions about the nullification of the shareholders' property. Dr Glavič and Mr Verbič, MSc, have emphasized in the letter to Mr Barroso that it is more than obvious that Slovenia has been treated unequally.
The expropriation of small investors is a disproportionate measure, and the implementation of the Decision of the Bank of Slovenia jeopardizes the financial stability of the capital market, the bank system, the economy and the country of the Republic of Slovenia as a whole – among other things they also caused that, before the elections into the European Parliament, Euro-sceptical political parties began to grow and gain influence because of the destruction of the social-market economy and the double-crossing of small investors caused by the finance industry, large capital and their lobbies. Therefore Dr Glavič and Mr Verbič, MSc, have suggested to the President of the European Commission to support their endeavours in order to reach an out-of-court settlement, in accordance with the Article 45 of the European Commission, excluding demands of the Articles 43 and 44.
Mr Verbič, MSc, is going to present the letter to the President of the European Commission on March 28 in the European Parliament at the international conference Better Finance, which is being prepared by the European Federation of Financial Services Users (EuroFinUse), whose active member is also VZMD. It is a part of a wider campaign »Better Finance Manifesto«, which is being managed by EuroFinUse before this year's European Parliament elections, and in the framework of which it summons all political parties to take their stand on four basic principles which have to be implemented in the next five years (VIDEO ANNOUNCEMENT which has been prepared by VZMD.tv and investo.tv).
Apart from the President of the European Commission, the letter has also been sent to the attention of: Michel Barnier, the European Commissioner for Internal Market and Services; Dr Janez Potočnik, Slovene Commissioner for Environment; Slovene Members of Parliament Tanja Fajon, MSc, Dr Romana Jordan, Jelko Kacin, Mojca Kleva Kekuš, MSc, Zofija Mazej Kukovič, Alojz Peterle, Ivo Vajgl, Dr Milan Zver; vice president of European Investment Bank Anton Rop, MSc; and a member of the European Court of Auditors Milan M. Cvikl, MSc.
You can see the entire letter by clicking the photo of the document.
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www.vzmd.si – More on the VZMD – PanSlovenian Shareholders' Association