The Slovenia Times

Speculative Pressure on Slovenian Bonds

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The yield on Slovenia's treasury bonds surged after several foreign media outlets reported that Slovenia might be the next potential candidate to need EU help after Cyprus.

Slovenian banks, including the biggest, NLB, are looking for solution for its bad loans, which already account for one fifth of the country's GDP, financial wire Bloomberg wrote today.

US business channel CNBC reported on Monday that, according to the International Monetary Fund (IMF), the country needed about EUR 3bn, while the banks were in need of EUR 1bn in fresh capital.

US paper Washington Post said on Sunday that Slovenia was a small country that raises concern, especially because the yield on its treasury bonds are rising.

The critical point for the yield on treasury bonds is above 7%, as this is when countries are no longer able to obtain sustainable loans, according to financial experts.
 

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