The economists may keep saying that the Eurozone is on the path to recovery and that the Euro crisis is over, that things will get better next year but try telling that to the latest struggling Eurozone country, Slovenia.
The central European state which was once part of Yugoslavia has edged closer to requesting an international bailout as lawmakers in the country warned that the country may soon run out of money.
Slovenia joined the Eurozone in 2007 and it wasn’t long before a crisis struck. A real estate crash created a financial crisis which saw the nation struggling with debt riddled banks and an economy over reliant on exports to the rest of the struggling Eurozone.
The country has already been hit by bailout scares, back in April it managed to avoid requesting one after it tapped into the bond markets but now the risk of a default has raised its ugly head yet again. Central Bank Governor Bostjan Jazbec told reporters that Slovenia would look for financial assistance from its European partners if sovereign debt yields rise any higher.
Analysts keeping an eye on the situation say that Slovenia’s banking sector could require up to €2-5 billion remaining. The government however is thought to have only €3 billion on its cash balance; the government believes it would €1.2-1.5 billion. Some experts are predicting that the country could face a liquidity crisis due to the amount needed to shore up the banks.
“This is what could Slovenia to request foreign aid. A long standing aversion to structural reform and foreign investment has taken its toll on Slovenia’s economy and created a vicious circle in which corporate and banking sector distress, weak public finances and a severe recession are all feeding on each other. The Eurozone crisis is tipping Slovenia over the edge” said Nicolas Spiro, head of Spiro Sovereign Strategy.
Euro (EUR) Exchange Rates
As of 16:00 pm GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3513
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8481
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4296
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6258
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4048
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 131.3513
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2295
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1786
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7400
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6992
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6148
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.7119
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8131
