Slovenia Shuts Down Two Small Banks

People ♦ Published: September 9, 2013; 15:22 ♦ (Vindobona)

In order to ensure the stability of its financing sector, Slovenia decided to liquidate two banks, Factor Banka and Probanka. According to state officials, the step was also taken to avoid international bailout.

Slovenia Shuts Down Two Small Banks / Picture: ©

According to a statement by the Finance Ministry and the National Bank, the government had arranged for guarantees in the volume of € 490m for Probanka and € 540m for Factor Banka for the secure repayment of depositors. The two troubled banks hold around four percent on the Slovenian financial market have not been able to operate as ususal as they have been burdened with bad loans…