05 April 2013

SLOVENIA / ECB / IMF : Is It Bank Bailout-Out Time In Ljubljana?

     Since converting to capitalism...the politicians in Ljubljana have steadfastly refused to privatize their state owned banks.
     They allowed a spending spree...often to associates and friends.
     Now...the state banks need new capital after many loans went sour...but the state has no money.
     In 2012...14.4% of all bank loans were non-performing...and banks hold more than 7 billion euros in non-performing loans.
     The nation's sovereign borrowing costs are now above 6%...nearing the dangerous 7% level.
     So...taxpayers are on the hook...and they are angry about corruption and continued austerity.
     Is a bank bailout by the dreaded Troika imminent for Ljubljana?