globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / Monday, March 25, 2013 6:39 PM
If you thought you could take a breather following the crash of Cyprus, you were wrong. Bloomberg reports Slovenia’s Nascent Cabinet Under Pressure to Avoid Cyprus Fate.
Slovenia’s six-day-old government is being urged to prevent the nation becoming the euro region’s next bailout battleground.
Prime Minister Alenka Bratusek’s Cabinet must quickly carry out a plan to revamp the country’s ailing lenders, the central bank said yesterday. The former Yugoslav nation needs about 3 billion euros ($3.9 billion) of funding this year, while banks need 1 billion euros of fresh capital, the International Monetary Fund said last week.
European Union officials are striving to contain a debt crisis that prompted Cyprus to join Greece, Portugal, Ireland and Spain in agreeing on a bailout. Slovenian banks such as Nova Ljubljanska Banka d.d. are struggling with surging bad loans that equal a fifth of economic output, fueling investor concern that it may be next to seek aid.