LJUBLJANA, June 19 European Central Bank
Governing Council member Marko Kranjec did not rule out that
Slovenia may have to ask for international aid to prop up its
banking sector, but there was no need to do so at the moment, he
said on Tuesday.
Asked whether Slovenia will have to ask for international
help because of the problems of its banking sector, Kranjec
said: "We do not exclude anything ... but for now this is an
entirely hypothetical question."
"Conditions (in the Slovenian banking sector) are going in
the bad direction, but for now I do not see a reason that
Slovenia would need to ask for (international) help," said
Kranjec, who is also governor of the Bank of Slovenia.
Earlier this month, Spain secured up to 100 billion euros in
bailout money to recapitalise its ailing banks, which raised
concern in the markets that such a step would push Europe's
fourth largest economy further into debt, potentially closer
towards requesting a full bailout programme.
Kranjec also stressed the need for fiscal consolidation in
Slovenia to bring the country's borrowing costs down.
"Yields on our (Slovenian) debt are very high but poor
availability of (financial) resources is even more worrying,"
said Kranjec, referring to severe cuts in availability of
international financial resources since the middle of 2011.
(Reporting By Marja Novak, writing by Eva Kuehnen)