Slovene Banks Liabilities Quality Worsens: Govt Institute

Size of loans to Slovenian cos. was lowest this year in August, govt forecasting institute says in e-mailed statement. * Loans to cos. down by EU1.2b in 8 months through August: institute * Household deposits at banks lower, institute says, without providing figures * Bad loans rise “significantly” by EU260m in July, represent 16.9% of all liabilities: institute * NOTE: Central bank said Oct. 1 bad loans rose to EU7.9b; link to story: NSN MTZD3B6JTSFH <GO> * NOTE: Slovenia’s economy will shrink more than previously forecast next year as ailing banking industry and austerity measures prevent recovery, govt’s economic institute said Oct. 1; story link: NSN MTZO146JTSF0 <GO>

To contact the reporter on this story: Boris Cerni in Ljubljana at bcerni@bloomberg.net

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