2,8 billion EUR for the recovery of Slovenian Bank Sector

The expense of saving Slovenian bank sector will in any case, regardless of the model, be on the burden of taxpayers, warns the Governor of the Bank of Slovenia, Bostjan Jazbec.
According to evaluations of 'Fitch' agency, around 2,8 billion EUR will be needed for the recovery of the bank sector, which is a double more from the initial evaluation of the Slovenian Government, according to 'iCapital'. At the beginning of September, the Bank of Slovenia decided to liquidate two Slovenian banks, Probank and Factor bank, after they realized the level of capital is insufficient.
Governor of the Bank of Slovenia explained that liquidation of these banks was necessary, in order to prevent further down fall of the banking sector. He also said in Parliament session that Probank and Factor bank 'are not being solved, but shut down'. Regardless of the procedure (bankruptcy or liquidation), all expenses will be upon owners and others with financial instruments.
- The first group will loose 122 million EUR, and the other ones 64 million EUR, said the Governor. Jazbec also explained why they didn't wait for the results of stress test.
- We had better undertake tests for eight banks, as the situation in Factor bank and Probank is so bad that it would ruin the results, he concluded.

Banka Slovenije

Boštjan Jazbec

Probanka

Factor banka

Faktor banka