‘Cost to the country will exceed half a billion’

Published on 10 September 2013 at 10:40

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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.

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