‘Cost to the country will exceed half a billion’

Published on 10 September 2013 at 10:40

Cover

The liquidation of two of the country’s smallest banks, Probanka and Factor banka, announced on September 6, could have serious repercussions for state finances and the business sector, reports Dnevnik.

Though small, the banks contributed finance to virtually all the major stakeholders that took part in Slovenia’s transition from communism to capitalism, reports the daily, highlighting the damaging knock-on effects the liquidations may have for several key companies and their suppliers.

The government announced it would underwrite bank deposits of around €500m for each institution, in order to prevent a bank run. Some analysts fear the ultimate losses for the state, which may include recapitalisation costs, to be more than half a billion euros.

Receive the best of European journalism straight to your inbox every Thursday
Tags

Was this article useful? If so we are delighted!

It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans.

Discover our subscription offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic