On 18 December, the European Commission approved Slovenia’s plan to restructure its banking sector, which includes injecting cash and government securities totaling EUR 3.2 billion into the country’s five major banks. The recapitalization plan was implemented after the results of the long-awaited stress tests on eight of Slovenia’s banks were published on 12 December. The results revealed a total capital shortfall in the banking sector of EUR 4.8 billion (approximately 10.0% of GDP). The three largest banks (Abanka, NKBM and NLB) failed to pass the aforementioned stress tests, thus requiring an injection of public capital.
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