The Slovenian central bank responded to mounting rumours about what the announcement of the results of stress tests at eight Slovenian banks would bring, saying that banks will continue to operate normally once the results are released.
With the expected release of the results nearing, speculation is increasing about whether the banks would close on the day they are published.
Banka Slovenije rejected this in a statement issued on Wednesday, in which it said that banks would continue to operate normally.
The publication of results of stress tests will have no effects on the way banks do business with clients, the central bank said in response to the increasing speculation in Slovenia's media.
It said all the guessing games about the results of the tests and the subsequent effects are "nothing more than speculation...and the same applies to announcements that the banks would be closed on the day the results are revealed".
While unofficial word has had it that the results would be released on Friday, 13 December, business daily Finance reported today that this could happen a day or two earlier.
The findings of the teams performing stress tests at Slovenian banks have been under tight wraps, even though it is understood that the testing was concluded in at least one of the banks weeks ago.
The results are highly anticipated given that Slovenia wanted to begin a broad bank rescue operation already in the summer using the Bank Asset Management Company (BAMC) to mop up toxic assets at the state-owned banks.
In line with the latest plans, the release of the results will be followed by flash recapitalisation operation involving up to EUR 4.7bn in state money to shore up the foundations of Slovenia's largest banks.
The BAMC will get involved in the second phase to clean up bank portfolios as part of efforts to make them profitable once again.
Source: TheSloveniaTimes
