Central bank Governor Boštjan Jazbec, who has said policymakers are reviewing the bailout option on a daily basis, said the extent of the banks' problems would be clearer by the end of November, when external stress test results are due. The banks are crippled by at least 7.5 billion euros ($10 billion) of bad loans - more than a fifth of national output - and the euro zone country is coming under pressure to seek help sooner rather than later.
Once the results of stress test and asset quality reviews are known, "then we will know exactly what is the state of the Slovenian banking system," said Jazbec, who also sits on the European Central Bank governing council.
On Sept. 6 the central Bank of Slovenia started controlled liquidation of two small private banks, Probanka and Factor Banka, while the state ensured guarantees for all deposits in the two banks in order to prevent a bank run. "The decision for such a liquidation was right," said finance minister Čufer. "Any uncontrolled bankruptcy ... would be playing with matches," he added. "The banking system in Slovenia is relatively weak, trust in it is limited."
Čufer told Reuters earlier this week Slovenia was still in a position to solve its financial problems by itself, without a bailout, but a senior official from the European Bank of Reconstruction and Development Eric Berglof encouraged Slovenia this week to seek help.
Slovenia was the fastest growing euro zone economy in 2007 until the global financial crisis crushed demand for its exports.