Slovenia fighting contagion from Cyprus

Author: Adam Button | Category: News

Slovenia, which is a member of the eurozone, is at risk of contagion from the crisis in Cyprus as banking fears spread.

Slovenian Prime Minister Alenka Bratusek told parliament today the country is capable of sorting out problems in its banking sector, the WSJ reports.

Three state-owned Slovenian banks, which together account for about two-thirds of the euro-zone country’s banking sector, are saddled by large amounts of nonperforming loans.

A chart of Slovenian borrowing costs shows the rising concern in the past two weeks.

Slovenia 8 year yield chart march 27, 2013

I don’t know much about Slovenia but I know that if I had an account at a struggling bank there, I would be pulling it out.

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