Slovenian central bank says country can recapitalise banks alone-paper
FRANKFURT Oct 28 (Reuters) - Slovenia will be able to recapitalise its crippled banking sector without help from an international bailout, Slovenian central bank governor Bostjan Jazbec told a newspaper.
The country is struggling to avoid becoming the sixth member of the euro zone to seek a rescue package from its peers, with its banks suffocating under an estimated 7.5 billion euros in bad loans, most of them held by state-run lenders.
Slovenia's government has set aside 1.2 billion euros to help recapitalise the country's three largest banks, but analysts expect ongoing external stress tests to show significantly larger capital needs.
"Whether this will be enough or not, we will have to wait and see," Jazbec told Austrian newspaper Der Standard in an interview published on Monday.
"But even if more money will be needed, I still believe that we will be able to raise this money in the market," said Jazbec, who also sits on the Governing Council of the European Central Bank.
He also said that the bank stress tests were in the "final stage" and results are expected to come out in November. (Reporting by Eva Taylor; Editing by Toby Chopra)
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