Bloomberg: Toxic Loans Risk Slovenian Bond Rally: East Europe Credit

Uroš Čufer, Minster of Finance. Photo: balkaninside.com

(Bloomberg) Slovenia’s bond rally, the biggest among Europe’s former communist nations, risks faltering as a government budget dispute following the cleanup of toxic-bank loans threatens to unseat Prime Minister Alenka Bratusek.

Bratusek, the third premier since 2011, is trying to quell a challenge to her leadership and end a coalition quarrel that threatens to derail her deficit-cutting program after she spent almost 10 percent of economic output last year to clean up the nation’s banks, whose bad loans reached 11 billion euros ($15.2 billion). The government needs to boost revenue and overhaul state companies to sustain the fiscal improvement.

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http://www.bloomberg.com/news/2014-04-15/toxic-loans-risk-slovenian-bond-rally-east-europe-credit.html