Slovenia could become the sixth eurozone nation to seek an international rescue, as the country's finance minister admitted on Thursday that a bail-out "can't be ruled out".
Janez Sustersic told reporters that while Slovenia's banking system was currently "manageable with our own resources" and there was no "need to ask for EU help," he added that "if the problems of banks turn out to be bigger, if it turns out we were not aware of some of them or if new risks appear, then maybe down the road, asking for help can't be ruled out."
Prime minister Janez Jansa has warned that Slovenia risks a “Greek scenario,” but that the government is “doing everything to find a solution” and avoid a bail-out.
Earlier this week, Nova Ljubljanska Banka (NLB), Slovenia's largest bank, successfully strengthened its capital buffers to meet the European regulator's capital requirements via an injection of state funding.
Slovenia had to pump €382.9m (£305m) into NLB after Belgian lender KBC, its second largest shareholder, decided not to subscribe to a new share issue.
The European Commission said it would open an investigation into NLB's restructuring plan, and cast doubts over the bank's current plan to "adequately address the causes for NLB's distress".
Cyprus became the fifth eurozone nation to request a bail-out last month, joining Greece, Ireland, Portugal and Spain, which have already requested financial assistance.
The country's president, Demetris Christofias, said on Wednesday that Cyprus was in talks with Russia for a loan that would be "more favourable" than an EU and IMF bail-out because it did not "impose any conditions" and offered a lower interest rate.
telegraph.co.uk
Janez Sustersic told reporters that while Slovenia's banking system was currently "manageable with our own resources" and there was no "need to ask for EU help," he added that "if the problems of banks turn out to be bigger, if it turns out we were not aware of some of them or if new risks appear, then maybe down the road, asking for help can't be ruled out."
Prime minister Janez Jansa has warned that Slovenia risks a “Greek scenario,” but that the government is “doing everything to find a solution” and avoid a bail-out.
Earlier this week, Nova Ljubljanska Banka (NLB), Slovenia's largest bank, successfully strengthened its capital buffers to meet the European regulator's capital requirements via an injection of state funding.
Slovenia had to pump €382.9m (£305m) into NLB after Belgian lender KBC, its second largest shareholder, decided not to subscribe to a new share issue.
The European Commission said it would open an investigation into NLB's restructuring plan, and cast doubts over the bank's current plan to "adequately address the causes for NLB's distress".
Cyprus became the fifth eurozone nation to request a bail-out last month, joining Greece, Ireland, Portugal and Spain, which have already requested financial assistance.
The country's president, Demetris Christofias, said on Wednesday that Cyprus was in talks with Russia for a loan that would be "more favourable" than an EU and IMF bail-out because it did not "impose any conditions" and offered a lower interest rate.
telegraph.co.uk
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