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Slovenian banks won't need eurozone bailout

Slovenian banks won't need eurozone bailout
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An external audit of Slovenia’s ailing banks shows they need 4.8 billion euros to plug the holes in their balance sheets.

The central bank said the country can probably come up with that much and so will not have to ask for a eurozone bailout, which will come as a relief to the European Union.

After bailing out five eurozone countries over five years of financial turmoil, another aid package, regardless of how small, would have sown doubt about the bloc’s insistence it can put the debt crisis behind it.

Banks in Slovenia are stuck with an estimated 7.9 billion euros in bad loans after the global economic crisis crippled exporters.

But even though Slovenia has avoided a bailout, experts say it faces a drawn-out crisis while remaking its economy to cope with new, harsher economic realities.