Slovenia set to be bailout number 6 for Europe ? We may know as soon as this weekend what Slovenia may need to do if last gasp talks for recapping their key banks fail ?

http://www.zerohedge.com/news/and-next-deck-slovenia-may-request-bailout-next-month-pm-says

And Next On Deck: Slovenia May Request Bailout Next Month PM Says

Submitted by Tyler Durden on 06/27/2012 13:04 -0400

• Fail

Because once you pop, you can't stop.

From Bloomberg:

Slovenia may ask for an international bailout if lawmakers fail to adopt legislation next month that would limit public spending, Prime Minister Janez Jansa said in an interview with a local radio station.

“July will be the moment of truth since parliament will vote on the golden fiscal rule and on changes to the way referendums are organized,” Jansa was quoted as saying in an interview with Koper-based Radio Ognjisce. “If we continue to get more and more debt, we will see a Greek scenario here and this generation will have to pay dearly for the stupidity of those that have delayed decisions.”

John Nash was a genius for a reason: defecting is stupid, but if you defect, defectfirst. Or at least be among the first. It seems Europe has finally had its first lesson in game theory and is learning fast.

Average:

5

http://www.businessweek.com/news/2012-06-22/slovenian-bank-bailout-is-last-resort-sustersic-says

Slovenia is seeking private investors to boost capital at its banks, including Nova Ljubljanska Banka d.d., and hopes to avoid turning to international lenders for a “last resort” bailout, Finance Minister Janez Sustersic said.

“We are working to avoid a bailout for Slovenian banks as this would be a bad signal at the moment -- it’s a solution of last resort,” Sustersic told reporters in Luxembourg today on the side lines of the meeting of euro region finance ministers. “If possible -- and I think it is possible -- we would get private investors for that, partially now and the rest by the end of the year so that such aid won’t be necessary.”

Nova Ljubljanska Banka d.d., Slovenia’s biggest financial services company, needs 500 million euros ($627 million) to improve its capital ratio by the end of the month and would need “much more” cash to start lending to companies and support economic growth, Sustersic said earlier this month.

The worsening debt crisis in Europe and the shrinking Slovenian economy are affecting business at the country’s banks which rely on the European Central Bank for liquidity because of limited access to wholesale funding. Lenders in the former Yugoslav nation borrowed 2 billion euros from the ECB’s long- term refinancing operation with NLB getting a 1.2 billion-euro loan.

Capital Increase

NLB investors will discuss the capital increase at a shareholders meeting June 27 with the proposal to prop up the bank with the sale of contingent convertible bonds to improve the core Tier 1 capital ratio. The government wants to cut its NLB holding to 25 percent plus one share, which may happen by the end of the year, and is trying to avoid injecting state funds into the bank, according to Sustersic.

KBC Groep NV (KBC) of Belgium is the second largest shareholder in NLB after the Slovenian government, which holds an indirect majority. Nova Kreditna Banka Maribor d.d. invited companies to carry out due diligence at Slovenia’s second biggest lender by assets to see how much capital it needs. Abanka Vipa d.d. is seeking to raise 50 million euros in a share sale.