Zero Hedge / by Tyler Durden / 06/14/2012 10:46 -0400
Has the Spanish bank bailout set a precedent for all other insolvent EMU member countries to follow? Of course. The only question is when is the stigmata of demanding a bailout (which Europe now has no choice but to grant courtesy of set precedent, be it via ESM or otherwise) less relevant than national pride, than preserving one’s banking sector, and preferably preempting the kinds of bank runs that pushed Spain to demand a bailout in the first place. For one small Eurozone member country the answer may be if not now, then very soon. Slovenia’s Dnevnik asks a simple question: “How serious is the situation of Slovenian Finance – are we on the way of Spain?” The answer, in not so many words: very likely yes.
From the google translated article - highlighted section most relevant
Although at the last auction of short-term debt during the Slovenian buyers again dominated by domestic financial institutions, full of liquid assets of the European Central Bank (ECB), were required average yields are relatively high, recalls Primoz Cencelj of KD Funds…. In exchange for 60.373 million, the government should provide a 0.9 percent annual return, which is 0.1 percentage points more than the auction just over a month ago. Perhaps even more concern is that Slovenia had offered to investors for 0.05 per cent higher rate than at the end of May Spain, which are currently both sentenced to issue short-term debt securities.