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Bank interest rates, which are significantly higher than the Eurozone average, are threatening Slovenia’s international competitiveness and the stability of the commercial sector, writes Dnevnik.
The country’s fragile banking sector had the highest interest rate in the Eurozone in 2012 after Portugal and Greece, while government bonds soared to almost 7 per cent in March this year in the wake of the Cyprus banking crisis.
Commentators point to the fact that almost 14 per cent of bank loans were in default, according to figures released earlier this year, representing some €7bn, and the risk this could evolve into many firms declaring bankruptcy looms large.
As a result, banks are now directing clients to seek loans abroad where interest rates for loans of more than €1m are set around 2.2 per cent, compared to domestic rates of around 4.6 per cent.
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