The NLB Group is in discussions with MIGA to potentially obtain guarantees to insure against the risk of expropriation of mandatory reserves held by the Group. The transactions which are scheduled to be concluded later this year could reduce the RWA of NLB on consolidated level by around EUR 300m.

NLB Group published an announcement on the Ljubljana Stock Exchange stating that with the aim of capital optimization on a consolidated basis, it is in discussions with Multilateral Investment Guarantee Agency (MIGA), a part of the World Bank Group, to potentially obtain guarantees to insure against the risk of expropriation of mandatory reserves held by NLB Group banking members with their local central banks.

The guarantee agreements are envisaged to be concluded with MIGA for each individual banking member of the NLB Group. The transactions which are scheduled to be concluded later this year could reduce the risk weighted assets of NLB on consolidated level by around EUR 300m.

To put things into a perspective, this amounts to 3.3% of the Groups 2019 consolidated risk weighted assets.