The Slovenia Times

Fitch: Slovenia to BBB+

Nekategorizirano


Fitch noted that Slovenia's macroeconomic outlook has "deteriorated significantly" since its last rating review of August 2012.

It expects a 2% GDP contraction for 2012 and a 0.3% decline in 2014, when Slovenia is expected to be one of only two eurozone economies to contract.

Fitch forecasts that the general government deficit (net of bank recapitalisation costs) will rise to 5% of GDP in 2013 from 4% in 2012, against a target set down in the end-2012 budget law of 2.8%.

It projects the general government deficit will surge to 72% of GDP due to the macroeconomic environment and bank recapitalization costs.

Crucially, Fitch believes that non-performing loans have yet to peak, given the prolonged economic contraction.

As for political uncertainty, Fitch says the government "is showing a renewed sense of urgency in addressing bank balance sheet clean-up and structural reforms".

However, it is an "interim administration comprised of disparate parties whose agendas sometimes conflict, and whose term may not extend beyond mid-2014".
 

Share:

More from Nekategorizirano