Head of Slovenia’s Chief Bank Arrested

Head of Slovenia’s Chief Bank Arrested / Picture: © NLB

This was reported by the media in Ljubljana. The Slovenian police confirmed the arrestment without disclosing any further details.

France Arhar, chairman of the supervisory board of NLB, is among the suspects of the national anti-corruption investigation committee, according to media reports. The investigations relate to an insider dea during the selling process of the biggest Slovenian retail chain Mercator to Croatian competitor Agrokor. In Ljubljana and in the city of Kranj seven offices and appartments were searched.

41-year-old Medja became head of the bank last year. Before that he has occupied a leading position at the Slovenian affiliate of Italian UniCredit. Arhar (65) is one of the most well-known bankers of the Eurozone member country. From 1991 to 2001 he was govenor of the National Bank and since June he has the function of chairman of NLB’s supervisory board.

According to reports by the media, Agrokor placed an unbinding offer of € 120 per share. A year ago, when the consortium let the sale burst, it was still € 220 per share. Agrokor is supposed to also take over the debts of Mercator in the amount of € 1.1bn. In mid-May the market value came at € 94.

It was not Agrokor’s first trial for the taking over of its CESEE competitor. Both enterprises are among the most important trade chains in the former Yugoslavian countries.