Yesterday, NLB announced that the Constitutional Court annulled the Law on the limitation and distribution of foreign exchange risk between creditors and borrowers concerning loan agreements in Swiss francs.

The Slovenian Parliament passed the Law on 2 February 2022, which you can read more about here. This came despite the negative opinions of the Slovenian Government, the legislative and legal service of the Slovenian National Assembly, and the European Central Bank. In March, the Constitutional Court unanimously adopted a decision to suspend its implementation as a whole, which you can read more about here.

Yesterday, the Constitutional Court of the Republic of Slovenia announced its decision in the proceedings for the constitutionality assessment of the Law on limitation and borrowers concerning loan agreements in Swiss francs, initiated by several banks, including NLB. The Constitutional Court decided that the Law is annulled. After the first announcement of the Law, NLB announced the potential pre-tax cost of EUR 70-75m, and with the Law’s annulment, this cost will be avoided. As such, we find this news supportive for the share price.