Subscribe free to our newsletters via your
. Earth Science News .

Slovenia next in line for eurozone bailout?
by Staff Writers
Brussels (UPI) Sep 13, 2013

disclaimer: image is for illustration purposes only

The eurozone faces more challenges in crisis-hit Greece and Spain and may have to bail out Slovenia next, officials say.

Slovenia's emerging liquidity problems made headlines in the eurozone less than a week before Germany's general election that will decide if Chancellor Angela Merkel retains her majority in Parliament.

Spain is facing its worst debit crisis and Greece has slashed more civil service perks, but while those problems are seen to be manageable, Slovenia's crisis is a new blip on the horizon.

European senior officials met Friday to discuss how to deal with Slovenia's gathering crisis, Germany's Handelsblatt business daily reported.

Slovenia's problem involves Nova Ljubljanska Banka, the country's largest bank. NLB has branches throughout Slovenia, Trieste in neighboring Italy and subsidiary banks elsewhere.

Recent downgrades by ratings agencies turned its stock into junk.

"The euro crisis has been on the back burner lately, but the problems facing banks in Slovenia are coming to a head," Der Spiegel online said. "Billions of euros in bad loans make the country a candidate for the next bailout," Europe's fifth in recent months.

Slovenia was wrongly seen elsewhere in the EU as a vibrant economy but a closer look revealed the country's rising living standards were propped up by bad credit, news media reported.

Slovenia was the first former Yugoslav republic to join NATO and the EU and touted by the EU as a model for other former socialist European democracies, Der Spiegel said.

The government of President Borut Pahor has already liquidated private banks Factor Banka and Probanka and put up $1.7 billion to guarantee the banks' liabilities. But the problems faced by Slovenian banking industry are much bigger than that rescue effort and in any case the Central Bank's move was seen as an attempt to prevent a run on banks.

Slovenian bad loan portfolio is said to exceed $9.3 billion.

The government in Ljubljana desperately wants to avoid becoming the fifth eurozone country to accept an international bailout of state finances, Der Spiegel said.

Four eurozone members that received bailouts -- Cyprus and Greece, Ireland and Portugal -- had to push through draconian budget cuts and tax hikes, Der Spiegel said.

Spain received EU emergency aid, not a full government bailout, though this may change. June data from the Central Bank showed Spain's public debt reached a record high of $1.3 trillion -- equal to about 92.2 percent of the country's economic output, the bank said.

Spanish austerity measures led to street protests with unemployment exceeding 26 percent.

Prime Minister Mariano Rajoy wants to reduce liability toward reduced public spending, but the country's unemployment benefit payments make that a problem.

In Greece cash cuts have forced the government to withdraw perks from government staff.


Related Links
The Economy

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

China free-trade zone spurs hope for reform revival
Shanghai (AFP) Sept 13, 2013
A planned free-trade zone in Shanghai is raising hopes that China's new leaders will revive long-stalled economic reforms as they seek to make their mark. China has become the world's second-largest economy and a driver of global growth thanks to a boom unleashed three decades ago when the Communist Party loosened state control of business and began to embrace the market. But deep reform ... read more

Japan to boost surveys off Fukushima: report

Iranian telegraph operator, first to propose earthquake early warning system

Workshop report explores use of mass collaboration in disaster management

New technique to assess cost issues from major flood damage

First laser-like X-ray light from a solid

Space's 'Ferrari' set to fall to Earth

Chinese-built Bolivian satellite tested in space simulator

Indiana Jones meets George Jetson

Libya's beleaguered government faces water threat

Hong Kong bans shark fin at official banquets

Climate change will upset vital ocean chemical cycles

Global warming could change strength of El Nino

Arctic ice shrinking in volume, too: ESA

New study points finger at climate in mammoth's demise

Penn Study Finds Earlier Peak for Spain's Glaciers

East Antarctic Ice Sheet could be more vulnerable to climate change than previously thought

Almost 20 percent of grain in China lost or wasted from field to fork

Indonesian farmers take legal action against president over haze

Overgrazing turning parts of Mongolian Steppe into desert

Certification of aquaculture critical to sustainable seafood production

Volcano prompts declaration of emergency in Peru

Floods kill eight in Romania, hundreds evacuated

Flooding kills three in US state of Colorado

Tropical Storm Gabrielle batters Bermuda: forecasters

Summit in Colombia promotes cooperation in African diaspora

Nigerian troops kill 10 insurgents after air strike: army

West pressed hard for end to Congo war

Guinea-Bissau rules out amnesty for coup leaders

Paleorivers across Sahara may have supported ancient human migration routes

Orangutans plan their future route and communicate it to others

New evidence that orangutans and gorillas can match images based on biological categories

Synthetic speech system puts a dampener on noisy announcements

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement