VZMD has been very seriously pointing out that to a long series of already known and disclosed facts, which expressly prove the lies in the claims made by the Bank of Slovenia, Ministry of Finance of the Republic of Slovenia and the Government of the Republic of Slovenia on the necessity of expropriations of shareholders and holders of hybrid and subordinated bonds of NLB, NKBM, Abanka, Banka Celje, Probanka and Factor banka, this type of new facts have been constantly attached.

Over the last few months, VZMD has - following the publication of results of the stress test of the European Central Bank (ECB) which NLB and NKBM failed, which, according to the claims of the Bank of Slovenia, was supposed to be the "proof" of the necessity of the expropriation of their private owners and subordinate creditors one year before - cautioned to extremely unrealistic pessimistic assumptions and forecasts applied in the tests of the two banks. Now that NLB and NKBM have published their revised annual reports for 2014, it has been become indisputably provable that it was not only forecasts of macroeconomic indicators that were downright unrealistic, but also the forecasts of capital adequacy of banks! In order for banks to pass or fail a stress test, it was pivotal for the ECB to use forecasts of the movements in the common equity tier ratio (CET1) of a bank, and to what extent the actual value (acknowledged by auditors) of CET1 at NLB and NKBM exceeds the forecast applied in the stress test, is summarized in the following table:

CET1 ratio for NLB at the end of 2014

CET1 ratio for NKBM at the end of 2014

stress test

(baseline forecast) 1

stress test

(adverse forecast) 1

actual2

stress test

(baseline forecast) 1

stress test

(adverse forecast) 1

actual3

13.8%

8.6%

22.7%

15.2%

11.4%

25.8%

1 www.ecb.europa.eu/pub/pdf/other/aggregatereportonthecomprehensiveassessment201410.en.pdf, str. 153
2 www.nlb.si/nlb/nlb-portal/slo/o-banki/vlagatelji/financna-porocila/letno_porocilo_2014.pdf, str. 45
3 www.nkbm.si/downloadfile.ashx?fileid=5418, str. 9

At the same time, April was the month of repeated corroboration of the fact, which was frequently pointed out by VZMD, whereby at the request of the European Commission (EC), also after August 2013, according to claims of the Banks of Slovenia, Ministry of Finance and Government of the Republic of Slovenia the cancellation of shares and subordinated bonds was supposedly a necessary prerequisite for the state-aided recapitalization of a bank, that EC has never required such cancellation from other countries and will not do so in the future

VZMD has been repeatedly pointing out, that EC had never required any intervention regarding subordinated bonds when on September 3, 2013, the Republic of Austria was issued a permission for the state aidto the Hypo Group Alpe Adria bank 
(http://europa.eu/rapid/press-release_IP-13-811_en.htm), neither did it do so on November 27, 2013, when the Republic of Italy was issued a permission for the state aid to the Monte dei Paschi di Siena bank (http://europa.eu/rapid/press-release_IP-13-1174_en.htm).  Nevertheless, VZMD is now also cautioning that EC did not require so either on April 9 this year, when the Republic of Ireland was issued a permission for the state aid to the Permanent TSB bank (http://europa.eu/rapid/press-release_IP-15-4755_en.htm); as this bank's shares continue to be traded with (http://markets.ft.com/research/Markets/Tearsheets/Summary?s=ILB:ISE) as well as their subordinated bonds
(www.ise.ie/Market-Data-Announcements/Debt/Individual-Debt-Instrument-Data/ShowSecTranche/?refNo=3931&trancheID=55536).

Therefore, VZMD would like to call upon the Bank of Slovenia, Ministry of Finance and the Government of the Republic of Slovenia again to hold back misleading and obscuring practices and to publicly state that the empirical evidence and the actual state of affairs already a while ago unequivocally proved the uniqueness of the measures of expropriation of shareholders and holders of hybrid and subordinated bonds conducted in NLB, NKBM, Abanka, Banka Celje, Probanka and Factor banka, and to enter into a constructive dialogue with all aggrieved parties

 

 

Other Related International Activities:

 

The District Court and the Higher Court officially acknowledge VZMD arguments concerning the unconstitutionality of expropriations, however the proceedings have been suspended until the final decision has been reached by the Constitutional Court of the Republic of Slovenia, which contacted the EU Court in Luxembourg - VZMD has provided written standpoints thereto after a world-class EU law expert joined the team

ATTENTION - unveiling evidence against the unlawfulness of Slovenian banks valuations and the overblown "bank gap" as a foundation for billion euro damage to the state and its citizens, based on unlawful actions by Bank of Slovenia and its Emergency measures decisions

Is the European Commission attempting to obstruct the investigation and protect the responsible persons?! The unprecedented provocation opens plethora of grave issues about processes, structure and perspectives of the EU -

»PLUNDER OF THE CENTURY« - VIDEO CONFRONTATION & disclosure of misleading statements of the Bank of Slovenia, the previous Slovenian government and other protagonists of the highly questionable 2013 bank restructuring, involving mass expropriation of citizens

EU PARLIAMENT & COUNCIL – VZMD contended with the progress & results of harmonization of the Proposed directive for encouraging long-term shareholder engagement, but warns of completely different practices as well as catastrophic repercussions of the Slovenian proposed amendment to the Book Entries Securities Act which is linked to the same Directive

CONSTITUTIONAL COURT - VZMD also lodged a proposal for the temporary decree for PROHIBITING THE SALE OF Nova KBM bank - to prevent direct damage to the Republic of Slovenia and its citizens

 

BANK OF SLOVENIA – »a year later« with a new secret resolution continues the destructive policy, on the basis of an already stipulated »calculation« of negative capital - the deletion of all subordinated bonds and stocks, also in Slovenia's sixth bank

STRESS TESTS – new and obvious proof of the extremely unequal adjudication of Slovenian banks – are they guilty in Brussels or Ljubljana, and what are their motives? The PanSlovenian Shareholders' Association (VZMD) has called on the Bank of Slovenia (BA) and the European Central Bank (ECB) to explain, why only in Slovenia are we left to use »static« and extremely pessimistic assumptions, while in other countries and banks of the EU fresh data and »dynamic« valuations are used and even allow for

WARSAW - the evening award ceremony, the second day of the »Warsaw Capital Market Summit 2014« international conference and beginning of the conference organized by International Monetary Fund and National Bank of Poland with active participation of VZMD through investo.si and investo.international programs (Warsaw, October 2014)

BANK OF SLOVENIA / NLB - unprecedented deceit of renowned international financial companies and investors - VZMD informed them of concealed facts, in its endeavor of protecting investors, and called for inacting supervision, proper sanctions of those responsible, alleviation of consequences, and thus preservation of the remaining reputation of the Republic of Slovenia (Ljubljana, September 2014)

NEW YORK – VZMD President invited to be a guest-speaker at the Annual Conference of the International Financial Litigation Network (IFLN) yesterday – shortly after a successful business delegation in Iran, he also participated in a discussion in the world's financial centre with some distinguished international lawyers and representatives from key law offices regarding the scandalous expropriation of the owners of shares and bonds at Slovenian banks - an alarming case indicating problems in the (New York, May 2014)

EUROPEAN COMMISSION – a reminder to the EU Commission President J.M. Barroso about the unequal treatment of Slovenia, and about the endangered financial, economic and social stability accompanying scandalous expropriation of share and bond owners at Slovenian Banks – a letter of the Civil Society Initiative and NKBM Section at VZMD to the EU Commission President is soon to be presented in the European Parliament as well (Brussels, March 2014)

        

EXPROPRIATION – VZMD has filed three more lawsuits, this time against the banks, because the entry of subordinated bonds and shares termination in the register has been established as null – further use of all legal remedies to protect the expropriated owners, the signatories to the VZMD Agreement, and granting authority to the law office (Ljubljana, February 2013)

Slovenian Constitutional Court acknowledges the legal interest of 293 initiators united by VZMD who demanded a constitutional review of the Banking Act (Ljubljana, January 2013)

CONSTITUTIONAL COURT acknowledged the legal interest of 290 initiators, united by VZMD who demanded constitutional review of the Banking Act; the Court has given priority to the two VZMD initiatives but suspension of the Act was rejected, due to misleading statements by the Government and the Bank of Slovenia - shares and subordinated bonds of 100.000 owners had been erased in the three biggest Slovenian banks! (Ljubljana, December 2013)

EXCLUSIVE VIDEO REPORT about the week of the MOSCOW-VIENNA-CAPETOWN conferences involving the following: active participation of the international business-investment VZMD programmes, signing a memorandum with the Russian Federation of Investors, and protection of rights of the Slovene and European shareholders at the Viennese conference »The Financial Repression of Savers and Investors« (Moscow, Vienna, Cape Town, October 2013)

 

NKBM = BANKIA – mass protests take place in front of The Central Bank of Spain (CBS) because of national fraud against 350,000 shareholders who are represented by the law firm that is attending, along with VZMD (Pan−Slovenian Shareholders’ Association), the international initiative at CBS. (Madrid, September 2013)

WORLD BANK – President of VZMD and EuroFinUse Board Member speaker of the first panel at the international conference about audit reform and the importance of audit committees (Bucharest, June 2013)

 

VIDEO REPORT – exclusively from the European Parliament: the EuroFinUse international conference and the Election Assembly, the announcement of the new President and Board of directors of this influential European association, into which a representative of Slovenia is also re-elected (Brussels, March 2013)

BRUSSELS – Slovenia with VZMD once more elected to the top of the European Federation of Financial Services Users – intensive international activities today continue with a conference in the European Parliament (Brussels, March 2013)

TOKYO – conclusion of the visit of Slovene economic and political delegation with Slovenian-Japanese Business & Investment Forum and the reception at Japanese investors’ association – the active role of VZMD with its international investors’ programs investo.si and investo.international(Tokyo, March 2013)

INDIA – visit of Slovenian government and business delegation – on the basis of Memorandum between ICPE and VZMD international investors' programs investo.si and investo.international also present (New Delhi, February 2013)

Memorandum of cooperation signed between the International Center for Promotion of Enterprises (ICPE) and VZMD, with additional expansion of activities within the framework of international investment programs investo.si and investo.international (Ljubljana, January, 2013)

EXCLUSIVE VIDEO REPORT of “International Conference on Benefits and Challenges of Public Private Partnerships for improving Energy Efficiency” – key statements of prominent participants (Ljubljana, October, 2012)

 

EXCLUSIVE VIDEO REPORT from EuropeanIssuers International Conference on »The future of European Equity Markets« at the Milan Stock Exchange – programs investo.si in investo.international also at the upcoming International Investors´ Conference in Wiesbaden (Milano, November 2012)

VIDEO REPORT - International Conference at the Brussels Stock Exchange Stimulated Investors' Representatives and Institutions to Participate at the Investors' Week 2012 in September in Slovenia(Brussels, March 2012)

 

www.vzmd.si – More on the VZMD – PanSlovenian Shareholders' Association

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www.investo.si – More on the investo.si – Invest to Slovenia Program

www.invest-to.net – More on the network of 55 national organizations of shareholders and investors – invest-to.net

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