‘Billions in banks are not the answer’

At a press conference to announce the results of stress tests of Slovenia’s banking system on December 12, the country’s central bank announced that a maximum of €4.78bn would be required to make up for the capital shortfall at eight of the most indebted banks.

The amount is close to the €4.7bn earmarked by the government to ensure that Slovenia will not have to request international assistance, and to enable the banks to return to international financial markets notes Dnevnik.
As it stands, the government has planned to spend €3.66bn to shore up the banking system, most of which will be spent on the recapitalisation of the county’s three main banks — Nova Ljubljanska Banka (NLB), Nova Kreditna Banka Maribor(NKB), and Abanka. The operation will go ahead “following a green light from the European Commission, which has promised a rapid decision on the matter,” points out the daily.
This only amounts to a first step towards the restoration of economic activity in Slovenia, remarks Dnevnik, which adds that the banks will not be able to resume lending until 2015.