Abanka Vipa d.d., Ljubljana (Abanka) hereby publishes the following announcement:

Based on the initiative pursuant to Article 20 of the Act Determining the Measures of the Republic of Slovenia to Strengthen Bank Stability and the Regulation on the Implementation of Measures to Strengthen the Stability of Banks submitted by Abanka Vipa d.d. to the interdepartmental committee of the Ministry of Finance, the Government of the Republic of Slovenia adopted a decision on 15 May 2013 determining that Abanka Vipa d.d. meets the conditions for the implementation of measures to strengthen the stability of banks, but an independent external review of the quality of assets and a stress test had to be carried out prior to the implementation of the measures. Following the completion of an independent external review of the quality of the bank's assets and a stress test conducted by external independent consultants between August and December 2013, on 18 December 2013 Abanka received the Decision of the Bank of Slovenia on Extraordinary Measures pursuant to Article 261.a of the Banking Act (ZBan-1).

The Bank of Slovenia adopted a Decision that as of 18 December 2013 all qualified liabilities of the bank should cease in full as follows:

1. the bank's share capital, in the amount of EUR 7,200,000.00, divided into 7,200,000 ordinary, registered, freely transferable, no-par-value shares, trading symbol: ABKN, ISIN Code SI0021108608 and issued in the central register of dematerialised securities, maintained by the Centralna klirinško depotna družba d.d., Ljubljana (KDD - Central Securities Clearing Corporation) and representing the qualified liability of the first order

2. the bank's liabilities under a non-cumulative subordinated loan, which is included in the core capital and supplementary capital I in the amount of EUR 120,000,000.00 on the basis of the agreement dated 18 January 2007 entered into by the Abanka as borrower and VTB Bank Europe plc, 81 King William Street, London EC4N 7BG, United Kingdom, as creditor, which represents a qualified liability of the first and second order and for which the funds were raised through the issuance of the Floating Rate Perpetual Loan Participation Notes with ISIN Code XS0283183084, issued by Afinance B.V., Locatellikade 1, 1076 AZ Amsterdam, in the amount of EUR 120,000,000.00.

In order to raise the capital needed to achieve the long-term capital adequacy of the bank, the Bank of Slovenia imposed an Extraordinary measure on the bank to increase the bank's capital pursuant to Article 262.a of the Banking Act (ZBan-1) through the payment of new shares by cash contribution by the Republic of Slovenia in the amount of EUR 348,000,000.00.

After the entry and subscription of new shares on 18 December 2013 and the entry of the capital increase in the register of companies, the bank's share capital will amount to EUR 150,000,000.00, while the total capital increase will amount to EUR 348,000, 000.00. The capital increase of the bank is an important step towards meeting the expectations of the regulator, the Bank of Slovenia, which, with the consent of the investor (Republic of Slovenia) has provided additional capital in an amount that will preserve confidence in the stability of the bank, both in terms of investors‘ expectations and the expectations of financial markets.

Abanka, as a systemically important bank, with a stable operating profit, will continue to pay special attention to ensuring the security and stability of operations and will adapt its operations to changing market circumstances. The bank will continue to implement measures with a positive impact on the capital adequacy ratio.

A restructuring plan of the bank is also being prepared in line with the expectations of the European Commission, which has approved the capital increase of the bank by the Republic of Slovenia. The restructuring plan will also include the transfer of non-performing claims to the Bad Asset Management Company and a further capital increase of the bank, which will be carried out by the Republic of Slovenia after the final decision of the European Commission.

This announcement will also be published on Abanka Vipa d.d.’s website as of 19 December 2013.

The announcement in the English language is for information purpose only.