Addiko Bank suspends guidance as Croatia, Slovenia loan rulings trigger provisions
Addiko Bank suspends guidance as Croatia, Slovenia loan rulings trigger provisions VIENNA, July 1 (Reuters) - Vienna-based Addiko Bank ADKO.VI suspended its financial guidance on Wednesday and set aside up to €48.8 million ($56 million) in provisions due to risks associated with the effects of rulings in Croatia and Slovenia over Swiss franc-denominated loans.
In the Croatian judgment, the Supreme Court adopted a methodology for calculating overpayments based on a different interest rate than the methodology prescribed for the statutory conversion of CHF-denominated loans, the company said in a statement
The Slovenian Supreme Court's judgment concerns banks' entitlement to compensation where CHF-denominated loan agreements have been declared null and void, it added
Both judgements were rendered against other banks, Addiko said
Addiko said it intends to recognise a provision between €33.1 million and €48.8 million regarding these loans
The bank has been the subject of a takeover battle between Austrian peer Raiffeisen RBIV.VI and Slovenia's NLB NLBR.LJ
($1 = 0.8773 euros)
(Reporting by Alexandra Schwarz-Goerlich in Vienna, Wiritng by Tristan Veyet in Gdansk, editing by Miranda Murray)
((Tristan.veyet@thomsonreuters.com))