Slovenia gives 1 bln euro guarantees to two fallen banks
ZAGREB, Sept 6
ZAGREB, Sept 6 (Reuters) - Slovenia has provided 1 billion euros ($1.3 billion)of guarantees to ensure the repayment of depositors of the two small lenders it was liquidating to preserve the stability of its troubled banking system.
A statement by the finance ministry and the central bank issued on Friday said guarantees totalled 490 million euros for Probanka and 540 million for Factor Banka.
Central bank Governor Bostjan Jazbec said depositors would be able to withdraw money as they did before, "with no extra limitations".
Slovenia's banks, struggling with 7.5 billion euros of bad loans or more than one-fifth of national output, are at the heart of speculation that the country may follow other troubled euro zone members in seeking an international bailout. ($1 = 0.7600 euros) (Reporting by Zoran Radosavljevic)
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