Brussels, 21/10/2013 (Agence Europe) - The head of Eurogroup, Jeroen Dijsselbloem, visited the Slovenian capital, Ljubljana, on Monday 21 October to examine the Slovenian economy and the country's banks. Problems with the latter might force Slovenia to request international financial aid, a scenario that Dijsselbloem ruled out.
Asked what would be the best type of structural adjustment programme to be laid down in return for a bailout for Slovenia, Dijsselbloem was categorical - “None.” He was speaking at a press conference with Slovenian finance minister Uros Cufer, where he said that the “top priority is the banking sector. This is crucial for economic recovery, as is the privatisation programme.” He did not seem concerned at the delays in the Slovenian bank stress tests, the results of which are due in November, commenting: “It is crucial that the stress tests are done right, to the highest quality standard. They might have taken more time than expected but the result is most important.”
Dijsselbloem explained that if the stress tests reveal shortcomings in Slovenian bank balance sheets, then: “Banks themselves are responsible for the banks overhaul as are their shareholders and investors. The second in line is the government which can invest in bank capital. If it cannot do that alone, and only in those circumstances, the ESM enters (the equation).”
In an interview with the Delo newspaper on Sunday, Dijsselbloem said: “For Slovenia, it is very important that it retains access to the financial markets,” adding: “We need to support Slovenia to continue its work. Any speculation regarding a possible bailout does not help with that.” (EL/transl.fl)