LJUBLJANA: Slovenia’s new “bad bank”, a key part of efforts to avoid becoming the next eurozone member to need a bailout, will receive its first transfer of toxic assets at the end of the month, its head said yesterday.
The crisis measure come after banks in Slovenia went on a major lending spree following the country joining the European Union as a model newcomer in 2004 and the eurozone three years later.
But the global financial crisis of 2008-9 found the former Yugoslav economy badly exposed and many of these loans went toxic as the economy contracted sharply and firms went bust. “We are building the organisation and making sure we can deliver taking the first assets by the end of this month,” said Torbjorn Mansson, Chairman of the Bank Asset Management Company.
The transfer from Slovenia’s biggest bank Nova Ljubljanska Banka (NLB) would be followed by others “in the weeks to come”, he added.
Slovenia’s biggest banks have been recapitalised several times and the dire situation has sparked concerns in recent months that the country might become the sixth eurozone member to need outside help.
AFP
