Slovenia: Banking Act Approved

Politics ♦ Published: November 1, 2013; 13:57 ♦ (Vindobona)

The Slovenian Parliament has voted for an amendment of the banking act. It is still unclear whether Slovenia is able to recapitalize the banking sector sufficiently.

Slovenia: Banking Act Approved / Picture: ©

Slovenia´s parliament wants to lower the future costs of bank bail-outs for Slovenian taxpayers. In future, ailing Slovenian bank institutes may be liquidated faster. But also the restructuring of problem banks may be completed more easily. Above all, holders of hybrid debt, mezzanine capital and other junior debt instruments are forced to share the burden of restructuring or…