Bloomberg News

Slovenian Central Bank Says Lenders Need to Raise Fresh Capital

October 27, 2011

Oct. 27 (Bloomberg) -- The Slovenian central bank said lenders will probably raise money in the former Yugoslav nation by securing more equity capital to withstand the impact of the debt crisis in Europe.

“It’s expected that the main portion of their capital increase will come from equity investments rather than asset sales,” Banka Slovenije said in an e-mailed statement today. “A further strengthening of banks’ should also be accomplished by withholding dividend payments and curbing bonuses.”

The announcement came after the European Banking Authority said banks in Europe need to raise 106 billion euros ($147 billion) in response to the continent’s sovereign debt crisis. Slovenia’s share is estimated at 297 million euros.

Banks in Europe need to ensure a core Tier 1 capital ratio of 9 percent by June next year, the central bank in the capital Ljubljana said.

--Editors: Douglas Lytle, Fergal O’Brien

To contact the reporter on this story: Boris Cerni in Ljubljana at bcerni@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


China's Killer Profits
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus