ECB Worried About Slovenia

Politics ♦ Published: September 12, 2013; 19:39 ♦ (Vindobona)

The European Central Bank is uncertain whether the financially stricken country will be able to manage its banking crisis.

ECB Worried About Slovenia / Picture: ©

Last week, Slovenia´s government resolved to liquidate the two small privately held banks Probanka and Factor banka. Together, the two banks have a market share of only 4%. Nevertheless, Slovenia´s Ministry of Finance provided guarantees of € 1.0bn. According to economists, this is a wrong signal. Instead of state guarantees, the banks should have gone bankrupt, Joze Damijan told to…