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Debtholders Should Take Hit in Slovenian Bank Selloff, OECD Says

Slovenia should sell state-owned banks with debtholders taking some of the losses to avoid a “severe” crisis, the Organization of Economic Cooperation and Development said.

The Alpine nation, hit hard by a boom-bust cycle and the euro area’s debt woes, should recapitalize “distressed,” viable banks with the state refraining from keeping a blocking minority shareholding and wind down non-viable institutions, the Paris-based OECD said in a report today.