The Slovenia Times

Eurogroup to Discuss Slovenia Bank Liquidation

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Finance Minister Uroš Čufer is expected to inform his counterparts about the latest developments concerning the financial sector, in particular the winding down of Probanka and Factor banka.

The same source sees the liquidation as a well prepared and "welcome development" carried out in cooperation between the Slovenian authorities, the European Central Bank (ECB) and the European Commission.

The statements contrast with a report in the German newspaper Handelsblatt Thursday suggesting that the Eurogroup is concerned about Slovenia's ability to finance the bank restructuring itself.

The paper says the ECB is putting pressure on the Slovenian government to seek assistance from the eurozone's bailout fund, the Euro Stability Mechanism (ESM), which has been rejected by Slovenian officials.

The Finance Ministry responded by saying it does not comment on unofficial statements by foreign media, while adding that "Slovenia has no need to ask for a bailout".

The European Commission's reaction was that Slovenia's situation remained "manageable provided that the authorities act swiftly and decisively" to address key challenges, notably fiscal consolidation, structural reforms and the repair of the financial sector.

"Let us not let interpretations of press articles based on anonymous sources become accepted fact," the press was told by Simon O'Connor's, spokesman for Economic and Monetary Affairs Commissioner Olli Rehn.

O'Connor added that the Commission was in close contact with Slovenian authorities and was supporting them in the implementations of the recommendations issued in May. In autumn it will assess the progress made, especially in the three key fields.

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