Slovenia is follows the Cyprus – next bank crisis

Slovenia cost of borrowing has risen dramatically in the last days, how he would fight with non financial crisis, becoming the first victim of infection from Cyprus.

“Banks are under severe distress,” said the international Monetary Fund in its annual health check of the country. Nonperforming loans in Slovenia, the three largest banks reached 20.5pc last year, and one-third of all corporate loans turning bad.

Slovenia financial crisis

Category: Finance Viewing 1754 | Added in June 11, 2013

10 Responses

  1. avatar boijie Says:
    June 11, 2013

    What I don't understand is - where is all the bloody money going?

  2. avatar DJPainless Says:
    June 11, 2013

    There isn't any real money anywhere most of it is illusory. The recently printed stuff is propping up stock market prices and bank balance sheets

  3. avatar robertbrowne Says:
    June 11, 2013

    Where is the money going? It is being transferred onto the balance sheets of bankrupt banks from the taxpayers. Banks then use it hike their salaries repair their pension funds. Then the attempt to repair and cover up for their disastrous lending practices. 

    They starve the real economy of working capital.  It was decided in the European looney union that every banks was too big to fail.  Now they have decided to let whole countries go to the wall because their banking policies were another disaster. Hans Werner Sinn suddenly copped that the obligations of the top 6 debtor countries (banks)is over 8.3 trillion. The gloves are off and now they are in confiscatory mode not just hitting bond holders but large depositors who are going to have to flee very fast if they are to escape with their wealth.Make you laugh when you see Osborne, in the middle of all this, trying to buy the next election taking people for complete fools by handing them loans they would otherwise be able to afford. People should consider that act of treachery as tantamount to being handed a long length of rope with which to hang themselves and their families. Forget Osborne and his ilk, keep saving and you will get them for the price of your savings in due course.

  4. avatar crashtestmonkey Says:
    June 11, 2013

    I have been asking the same question for the past two years but never had an explanation.

    I know it is funny money. I know it doesn't really exist but once created it is quite hard to get rid of and like rabbits, continues to multiply once in the wild.

    Any theories?

  5. avatar eurostar Says:
    June 11, 2013

    My take is that the banks lent money based on the view that the economies of the EZ would grow at 2.5 - 3.0% per year meaning there would be sufficient capital in the system to cover the banks loans / investments and support their further growth.

    The 5 years of net negative growth has put a 15 - 20% hole in their plans and when your exposure is 100 billion plus this starts to be significant.

    High property prices are further undermining growth but cannot be allowed to fall as this will further destroy bank balance sheets. High energy prices are doing the rest.

    The only hope is growth but the euro stiffles growth so bank losses will continue to grow. Our EU elite have realised that the Greek haircut of bond holders sent Cyprus (and possibly others) over the cliff. The electorates of the richer nations will not countanance bailouts so the next best option is raids on depositors but this cannot last because if they do this again the banks will cease to function across the entire EU.

    If Cyprus leaves the Euro and devalues we have more bust banks so must be prevented at any cost, politican cost that is, but every fix put in place makes the situation worse.

    Where next, limits on the type of government debt banks can hold, i.e. French banks can only hold French government debt? Might have worked if implemented in 2008 but we are too far down the road for that now and the overall level of debt is too high. Massive printing of Euros? Not many options left. The dominoes are falling.

  6. avatar robertbrowne Says:
    June 11, 2013

    I was in Germany once a couple of miles outside Munich up in a place called Andechs monastery, where monks make sehr gut german bier and close their place of worship early so that everyone can drink bier. 

    I was with a friend and we were having a laugh at the set up. Bavarians, in their short leder trousers, dunking huge jugs into vats of beer and smacking them, two at a time in front of you. "Warum lachelst du?" Why are you laughing or smiling? Germans are very serious people. I mean there was drinking to be done.

  7. avatar 9101 Says:
    June 11, 2013

    Northern States will start to feel the crisis as well. 

    The current austerity during recession policy is simply madness. Northern States can withstand for longer... but unemployment will soar there as well.

    At that point the madmen in Berlin will realize that ECB stimulus throughout Europe is inevitable

  8. avatar labrass Says:
    June 11, 2013

    Yet another euro crises set to blow up. When is one of the southern european states going to wake up and realise the madness,not to mention the human cost of staying in the euro,and say enough is enough and pull out.

    The euro is doomed and there could be a major financial collapse across the ez very soon.

  9. avatar tomaso Says:
    June 11, 2013

    No government reforms without crisis. Their main interest lies in getting re-elected. This particular crisis forces them to reform and re-balance, and several of them doing now what they should have done many years ago.

    None of the  particularly recession-hit countries want to leave the Euro. What does that tell you?

  10. avatar kom Says:
    June 11, 2013

    Why? After the adjustment they can grow again. This is not a permanent recession.

    They are doing what the British do not have guts neither competency to do that. In 2017 the Public Debt in the UK will surpass Italy.

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