Ljubljana, 02 July (STA) - Insurer Zavarovalnica Triglav began Tuesday procedures to rescind the contracts with the International Finance Corporation (IFC) over its failure to recapitalise Triglav's subsidiary Triglav INT within the agreed period, the insurer said in a statement published on the website of the Ljubljana Stock Exchange.
Since the IFC, a part of the World Bank, failed to recapitalise Triglav INT in line with the agreement, Zavarovalnica Triglav sent IFC today a draft termination agreement in order to cancel all contracts with the IFC, the insurer said.
"Triglav will continue with activities aimed to consolidate its position in the area it covers, taking into account macroeconomic conditions and forecasts, expected structural reforms and opportunities in the insurance markets in the region as well as those offered by potential new insurance segments," the statement said.
The development comes after IFC agreed in April 2012 to buy a 16.68% stake in Triglav INT for EUR 25m. Its investment was aimed at accelerating the growth of market shares, introducing improvements in operations and new insurance products.
Triglav Group founded the wholly-owned subsidiary Triglav INT in late 2010 and put it in charge of its operations and markets outside Slovenia, which include Bosnia-Herzegovina, the Czech Republic, Montenegro, Croatia, Macedonia and Serbia.