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Slovenian Bankruptcy Would Hit Austria Particularly Hard

People ♦ Published: September 3, 2012; 15:28 ♦ (Vindobona)

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Prime Minister Janez Jansa announced that Slovenia may have to declare its national bankruptcy in October. Austria´s share in foreign direct investment made in Slovenia reaches about 50%.

Slovenian Bankruptcy Would Hit Austria Particularly Hard / Picture: © Vindobona.org

According to Prime Minister Jansa, a failed emission of Slovenian sovereign bonds in October or November may trigger the national bankruptcy. The Slovenian state intends to issue bonds worth € 2.0bn. At the moment, taking up loans is almost impossible, Jansa said. In 2013, Slovenia must refinance about € 2.0bn.

Christian Miller (Austrian Chamber of Commerce) explains that…