Slovenia: Bankruptcy Without ECB/ESM?

Politics ♦ Published: September 15, 2013; 20:16 ♦ (Vindobona)

Without external aid, Slovenia will not manage its severe financial crisis, experts say. A bail-out becomes more likely.

Slovenia: Bankruptcy Without ECB/ESM? / Picture: ©

Economists are doubtful whether Slovenia is able to support the big systemic banks. Erik Berglof, chief economist at the Eurpoean Bank for Reconstruction and Development (EBRD) thinks that Slovenia depends on external aids. As Slovenia´s budget is rather tense, a bail-out by the ECB, ESM or IMF would be the last remaining alternative. The budget deficit in 2013 is expected to reach…