LONDON, July 4 (IFR) - The Republic of Slovenia (A2/A+/A)
said it still intends to tap the international bond markets this
year despite nagging concerns over the health of its banks.
The confirmation follows an investor update on Tuesday to
discuss government reforms and recent support for its largest
bank Nova Ljubljanska Banka Group (NLB).
"We are still planning on coming to the market this year but
it all depends on the circumstances," said Bostjan Plesec,
director general of Slovenia's Treasury Directorate.
Slovenia pulled a planned euro-denominated issuance in
April, which followed an investor roadshow arranged by BNP
Paribas, HSBC, JP Morgan and Societe Generale.
At the time Fitch said Slovenia had one of the weakest
banking markets in Central and Eastern Europe due to rising
Slovenia has just EUR700m left to fund its budget deficit
before the end of the year. Plesec said it could do this through
its T-Bill programme or domestic bank borrowing but its
preference would be for longer maturities available in the
syndicated bond market.
EU competition regulators temporarily cleared a EUR383m
capital boost for NLB on Monday and will study a revamp plan for
NLB to ensure it addresses the bank's problems and does not give
an unfair advantage.
Slovenian authorities plan to inject more capital into NLB
to meet EU solvency requirements after Belgian shareholder KBC
decided not to subscribe to a new share issue. The European
Commission said the capital infusions complied with EU state aid
(Reporting By John Geddie; editing by Alex Chambers)