The first thing you need to do is choose a news reader, if you already don't have one. This is a piece of software that checks feeds you have requested and lets you read any new articles that have been added. There are various types of news reader. You should choose one that will work with your computer’s operating system.
When you have chosen a news reader, you can decide what content you want to keep up to date with. Please choose from below:
|Albania||Bosnia and Herzegovina||Bulgaria||Croatia|
|INTERVIEWS BY BALKANS.COM|
Alternatively, you can paste one of the BBN RSS URLs into a new feed in your news reader.
|E-mail article||Save||Additional News in English||Još vesti na Srpskom||Επιπλέον ειδήσεις στα Ελληνικά||Text|
Our general feeling is that the Slovenian Government has done a lot of preparation and approved many important things (such as no more referendums on fiscal issues, fiscal rule, partial labour and pension reforms) that has kept our view on Slovenia constructive. However, we think the main obstacles for economic recovery a resolution of the impaired banking sector and fiscal consolidation are lagging and reoccurring delays (not in days, but in months and quarters), which are caused by both local and external (EC) factors, have impeded our constructive view.
The Slovenian banking sector remains the main source of uncertainty given the unclear schedule regarding its recapitalization, which we believe could be undermined further by the political situation. General expectations that the transfer of bad loans from the country's largest bank to the state-owned bad bank' (BAMC) would start in October are no longer valid and policymakers say they now hope this will take a place by year end. Moreover, the BAMC's bonds will likely not be an eligible collateral for ECB, at least initially until their secondary market develops.
Recapitalizing the banking sector is likely to take more funds than initially expected. Though we expect the main increase in recapitalization requirement is likely to come from the change in proportion between the transfer price and recapitalization, the impact on MinFin's financing requirements could be quite large and more severe given its immediate cash impact.
MinFin has a solid financing reserve of €3.6bn, but if the lower transfer price is applied, it could be a source of financing stress. There are redemptions of MinFin liabilities at €3.2bn due in 2014, which suggests the available cash reserve would be depleted around April next year depending on T-bills' rollover, how the fiscal deficit is managed in the next few months, or whether remaining other government deposits are used. If we take into account our illustrative estimates of recapitalization requirements (based on lower transfer price and larger volume of NPCs to be transferred), this would exceed the MinFin's reserve for recapitalization (at €1.2bn) by €0-600mn if the Tier 1 ratio was targeted at 9.5%; by €0.1-1bn if the ratio was set at 12%; by €0.4-1.3bn if the ratio was at 14%; and by €0.8-1.6 if the ratio was at 16%.
Meanwhile, the political situation is not helping with regards fiscal consolidation measures and quick privatization in the banking sector. We think that the central bank seems more willing to ask for external assistance if there are other obstacles, while the MinFin treasury is afraid of this step.
Related News in English
Povezane vesti na srpskom
Συναφείς Ειδήσεις στα Ελληνικά