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12 Jun 2013
Slovenia to rescue its banking sector
FXstreet.com (Barcelona) - Slovenia is about to inject over €900 million to rescue its debt-laden banking system.
According to source familiar with the talks, the urgent measures to save the banks may be planned for late this month so that the country can temporarily avoid to be bailed-out by international lenders, which include the EU, ECB and IMF.
Prime Minister Alenka Bratusek was direct on her official statement, telling the Czech daily Hospodarske noviny that: "We will carry out the capitalisation according to the central bank's estimate by the end of June."
In view of Slovenian PM, "Our goal is to transfer the first package of toxic loans to the bad bank by the end of June."
At this point, the country's largest bank, Nova Ljubljanska Banka (NLB), and the second largest, NKBM, approved earlier on the week to take up 500 and 400 million euros respectively to be recapitalized.
In total, the government is expected to make a disbursement of 1.3 billion euros to restructure its bank's balance sheets.
The bad augurs in the country are mounting, with the latest projections pointing at Slovenia's deficit around 8%/GDP, almost 3x above the agreed targets set by the EU.
According to source familiar with the talks, the urgent measures to save the banks may be planned for late this month so that the country can temporarily avoid to be bailed-out by international lenders, which include the EU, ECB and IMF.
Prime Minister Alenka Bratusek was direct on her official statement, telling the Czech daily Hospodarske noviny that: "We will carry out the capitalisation according to the central bank's estimate by the end of June."
In view of Slovenian PM, "Our goal is to transfer the first package of toxic loans to the bad bank by the end of June."
At this point, the country's largest bank, Nova Ljubljanska Banka (NLB), and the second largest, NKBM, approved earlier on the week to take up 500 and 400 million euros respectively to be recapitalized.
In total, the government is expected to make a disbursement of 1.3 billion euros to restructure its bank's balance sheets.
The bad augurs in the country are mounting, with the latest projections pointing at Slovenia's deficit around 8%/GDP, almost 3x above the agreed targets set by the EU.