Commission denies Slovenia bailout request
Monday 16 July 2012
The European Commission has denied it is in talks with Slovenia on a possible bailout after banking sector woes forced the government to step in to shore up the country’s largest lenders. “We have not received a request for financial assistance from Slovenia and we are not expecting a request,” said a spokesman for Economic Affairs Commissioner Olli Rehn, on 16 July. The government stepped in with €320 million to recapitalise Nova Ljubljanska Banka last month and the European Banking Authority has said that it may need to do the same for Nova KBM before December, which has fallen short of a 9% emergency capital requirement set by the EBA last year. Eurozone finance ministers discussed Slovenia’s economy at a meeting, on 9 June, saying that “further potential recapitalisation needs are limited” and could be handled by banks themselves or by the government without recourse to the eurozone’s bailout fund, the European Financial Stability Facility.