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Full Frontal Of Slovenia's "Non-Performing" Moans
Ever since Cyprus hit the headlines, Slovenia has been close behind. Another small European nation with a banking system that dwarfs its GDP (though not on the scale of Cyprus). However, as we noted previously, it is not the size that matters, it is the precedent. The European leadership are desperate for the 'template' used in Cyprus - of haircutting all the way through the capital structure - not be used in Slovenia for fear the real world will see through their jawboning facade. Chatter continues that Slovenia can get out of this on their own - in some magical government-guaranteed reacharound - but, just as in Cyprus (where Non-Performing MLoans reaching 30-40% was the trigger for their avalanche), so Slovenia is there now.
However, while the 'average' is around 14% NPLs, the large state-controlled banks had over 30% NPLs at the end of 2012. The need for in excess of EUR1bn in recapitalization alone - though stress test results have been kept secret - and as the FT's op-ed notes, in order to appease global investors' fear that lessons have not been learned, government money (read taxpayer) should not be the first option, creditors should be bailed-in.
With Slovenia CDS stuck at six-month wides, it appears the market remains far more nervous either way.
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Slovenia huh?
How do I get some of that crap?
Its time for the imf & the bernank to go all-out crazy.
They should start buying shit to the tune of $20 billion a day.
Once the connected rats quit paying their loans, you'll know the Slovenia ship is going down.
They should have stuck to the tolarjev.
geographically located near Italy's right armpit.
Many of these eurotrash countries don't exist in the american consciousness.....Full Bluntal Nugity .. I'm loading my guns.
when they confiscate slovenia's bank deposits we can finally break through 1600 S&P.
They should start searching for natural gas fast.
And the dotted line represents?
OT: Fed acknowledges early release of minutes yesterday. "sometime after 2pm"
The nice thing about all of these countries collapsing & making headlines my kids learn where they are on the globe.
Yea..I now know the capital of Slovenia. Ljubljana. Never knew that before. Of course I can't pronounce it but hey..
nearing 60, the globe hardly looks the same as the one I learned as a kid, and most of the changes have come about in the latter half of my life
Get the depositors to hand over to the bankster robbers again. And forgive the non performing loans to politicians and their friends and family like in Cyprus eh?!
Slovenia. 2 milion of people. The EU phantom menace. You must be kidding
No kidding. An avalanche of triggered CDS can start there, as good as everywhere else ....
like they where triggered in Greece?....
In monopoly... the rules change every 30 seconds.
Euro supporters say that Slovenia does not have much public debt. But as discussed in the analysis below that looks likely to change and soon!
Ah yes Ireland! Didn't the Eurocrats tell us that its bank problems were under control just before they collapsed?
It would be nice to see a former communist country tell the Troika to fuck off.
LET'S NOT CALL IT A HAIRCUT THIS TIME!!!
BUT A BRAZILIAN WAX!!!
BRUSSELIAN WAX would seem a more appropriate name.
...gone horribly wrong and disfiguring the bud
You can bet that all the politicians and those connected to the politicians are already moving their money out of the banks before they lock it up.
We should round up a few dozen bankers, put them inside a wooden horse, and push it over the DMZ. That would do it to the NKoreans.
Toss in a few festering chickens from China, and some earless Fukishima rabbit while yer at it...
I keep picturing the scene in 'Quest for the Holy Grail' where one of the knights is outside the castle describing how they are to jump out of the trojan bunny they just delivered to the Norman castle. When everyone realises they had screwed up the bunny comes catapulting back at them and crushes one of the horsemen. I just pictured a bunch of EU and US bankers in Trojan bunny being catapulted by the NorKo's back to Seoul. Pyongyang - 'tis a silly place.